Reserve Bank Governor Tito Mboweni will aim for lower inflation during his next term of office.
Mboweni, whose contract was renewed last week for a further five years, told reporters in Johannesburg on Monday he would continue with policies introduced in his first five years in office.
These included a gradual accumulation of foreign currency reserves, which would support the value of the rand.
Mboweni said the departure of deputy governor Gill Marcus would not affect monetary policy or bank supervision. Marcus’s contract ran out at the end of June and was not renewed by President Thabo Mbeki.
Mboweni said inflation targeting had been a bold step for the institution, the country and the economy.
He said the market perceived South Africa as a developing country starting a complicated process without the necessary skills.
”We decided in 2000 to proceed with our initiative despite not having the necessary expertise, and for the purpose of our research we engaged with our counterparts in the developed countries,” Mboweni said.
”Now it is apparent that we have been approached by countries wanting to know, how did we manage to establish the framework, and they also wanted to exchange expertise.” – Sapa