Tonight is not the appropriate occasion to spell out our detailed approach to monetary policy or its role in the South African economy. However, we are not going to try to rewrite the monetary policy textbooks or reinvent the wheel. The principles of sound and prudent central banking are the same the world over and will not be fundamentally changed by any central bank governor, no matter how energetic or enthusiastic, let alone how young. The details of our approach will be spelt out in the Governor's Address at the Annual General Meeting of the Bank on the 24th of August. However, whatever we say then will be in accordance with the principles of sound and prudent monetary policy frameworks that have been tested in a global context.
Central banks follow different approaches to their monetary policy frameworks.
Some central banks have adopted currency boards to fix their exchange rates, while others follow exchange rate targeting or inflation targeting. We will design our approach bearing in mind our particular experiences and history, as well as taking into account international best practice which has delivered financial stability and acceptable levels of inflation. South Africa has been exposed to the recent turmoil in financial markets but has emerged, whilst a little bruised, both stronger and wiser. We, like other countries, have learnt important lessons and will put our experience to good use. We know that if we want to benefit from globalisation in the form of sustained foreign capital inflows, we should constantly think of ourselves as citizens of the global village.