In the present world environment, this will require a rate of inflation of even lower than 5 per cent. The Reserve Bank is often criticised for being obsessed with inflation, and for unnecessarily depressing the domestic economy, in its efforts to reduce inflation. Studies like those recently produced by Michael Sarel, an economist at the International Monetary Fund, are thrown against the Bank. 3.
The monetary policy model of the Reserve Bank In 1986, South Africa introduced the M3 money supply as an anchor for monetary policy.