We hope to remedy this by anchoring inflation nearer 4.5% – the midpoint of our target range – as we have repeatedly said in MPC statements and in speeches. The poorest South Africans should be among the biggest beneficiaries of that policy. Inequality and macroeconomic policy To conclude, monetary policy affects inequality through several channels.
Since the mid-1990s, State bank has further strengthened the market-orientation of policy implementation, cut reserve requirements, developed open market operations, increased the flexibility of liquidity management, sharpened the focus on interest rates while maintaining reserve money as the operating target, improved the transparency of policy signals and shortened the maturity of interest rates serving as the fulcrum of policy.