Good afternoon ladies and gentlemen. Thank you to JP Morgan Emerging Markets Research Group for inviting me to share with you some thoughts on South Africa’s Monetary Policy. In the years prior to the most recent global financial crisis, central banks in general appeared to have almost perfected the conduct of monetary policy . Inflation targeting central banks were given operational independence to vary the short-term interest rate in order to achieve an inflation target. While this worked very well for some time, the global financial crisis showed us that achieving price stability by no means equated to achieving financial stability. This has resulted in somewhat of a paradigm shift for traditional monetary policy, and it seems we may be on the cusp of a new era in central banking. I would like to briefly discuss global economic developments and the changing role of central banks, highlighting the challenges and lessons learnt from the global financial crisis. I will then talk about South African monetary policy, as that is the reason for which I was invited to speak to you today.​