Irrespective, monetary policy must achieve low inflation, which will provide a stable environment conducive to long-term growth. Inflation targeting was introduced in South Africa in 2000, with a clear and concise mandate. The democratically elected government sets the monetary policy goal in the form of a pre-announced numerical target, while this goal establishes a benchmark for accountability.
It is only if the amount of settlement cash falls below a sufficient level that it will have a material impact on short-term interest rates. This is different to before COVID, when, under the corridor system of credit tiers, changes to the level of settlement cash did impact the implementation of monetary policy.