To the extent the inflation targeting system and the monetary policy decision-making process is perceived by market participants to be more transparent, this will be a positive development for the other CMA countries and for Namibia. This should reduce unwarranted market reactions, which at times result in disruptive movements in exchange rates and interest rates, with negative consequences for trade and other economic activities.
It is also important for us to note that the adoption of inflation targeting will not in any significant way change the practical implementation of monetary policy.