South Africa was better off with using inflation targeting as an instrument of monetary policy, the governor of the SA Reserve Bank (SARB) said on Tuesday.
"Let's stick to it for now," he told a gathering of Wits students.
He said while there were those who argued that alternative instruments could be used to fight inflation, these instruments - such as forcing banks to increase their reserves - weren't useful.
Mboweni said that lately, there had been calls to abandon inflation targeting.
"But that's because rates are high - when rates were low, no one called for inflation targeting to be shelved."
05 August 2008
Tito: Inflation Targeting Is Here To Stay
Tito sticks to his guns