Monetary policy has a narrower focus but it occupies an important component of the foundation upon which the broader goals of macroeconomic policy rest. Monetary policy aims to create and maintain a  4  BIS Review 59/2002  stable financial environment within which overall economic activity can be expanded, jobs created and poverty reduced.
This monetary policy objective is supported by the legal obligations of the Reserve Bank as set out in the Constitution of the Republic and in the South African Reserve Bank Act. Since inflation is our main focus, you may question where the exchange rate of the rand fits into the monetary policy framework?