The US Federal Reserve (Fed), for instance, has a triple mandate, for low inflation, low unemployment, and low interest rates.8 In practice, the Fed aims to anchor inflation expectations in line with its 2% target. In turn, low inflation helps to keep interest rates low, and the two together help to maximise employment.
One can explain US interest rate decisions pretty well using a simple rule, as the economist John Taylor famously showed. Simply put, the Fed reacts when inflation is not on target and when unemployment is away from its normal levels. We consult very similar models in the SARB, and they also describe our policy decisions pretty well.