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Interest rates are used by the SARB to influence inflation. The inflation target is set by the National Treasury, in coordination with the SARB, and serves as a baseline against which price stability is calculated. The primary goal of monetary policy is to decide how much money can be in circulation in a given economy.

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The SARB uses interest rates to influence the level of inflation. National Treasury, in consultation with the SARB, sets the inflation target, which acts as a benchmark against which price stability is measured. ... The basic aim of monetary policy is to determine how much money an economy should have in circulation.

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