There is the risk of course, that central banks could lose credibility if they rely too heavily on intervention. 3. The South African experience  The South African experience with the implementation of inflation targeting has been a positive one.
Work done by my MPC colleague Brian Kahn and others has shown that South Africa has benefited from a flexible approach to inflation targeting and managed to weather the storms that came along with challenges of multiple supply side shocks of an extended duration, and exchange rate shocks.