The Reserve Bank is convinced that targeting the exchange rate is an outmoded concept, and hence we are working towards implementing an inflation targeting framework. Inflation targeting is no quick fix, but it should help to anchor inflationary expectations. A key feature of the South African monetary policy system is the Reserve Bank s independence. But independence implies accountability and transparency. In fact, I have suggested to the Parliamentary Joint Standing Committee on Finance that we appear regula rly before the committee to demonstrate our accountability to South Africa s people.
Accountability also implies a high level of transparency over monetary policy decisions.
One of the ways in which we are promoting further transparency is by releasing statements when there are changes in monetary policy. We also plan to release statements after meetings of the monetary policy committee, even if there is no change in the policy stance. The monetary policy committee is a new feature of policy decision making in the Reserve Bank. Its members will be the Governor, the three deputies and senior officials of the Bank. The committee will meet once every six weeks.