Inflation target is best policy, Mboweni says
By Hilary Joffe
From Business Day
Reserve Bank Governor Tito Mboweni launched a renewed defence of the inflation targeting policy yesterday, telling students at the University of the Witwatersrand that any central banker worth his salt would have to pursue low inflation and that the alternative instruments did not work.
Inflation targeting takes a long time to work, it has a significant lag from when rates are changed to when they are felt through the economy. So the last few years and 500 basis points later we still have not felt the full effects. In the meantime while you wait, open a savings account or get a better banking account, transfer your credit card and plan for your retirement.