This is likely to, in turn, have an adverse knock-on effect on the level of employment and the general inflation level. Furthermore, a country that does not conform to international standards and best practices with regard to its financial system, risks isolation from the international economic community.
The adoption of a formal inflation targeting framework for monetary policy is a move which the monetary authority and the financial community in Namibia has to follow closely. First, it is important for us to understand what inflation targeting is all about. Under this system, a specific target for inflation in the medium term is publicly announced.