US academic applauds S.Africa's monetary policy

A leading Harvard University academic endorsed the South African Reserve Bank's inflation targeting on Tuesday and said the country's monetary policy was in sound health.

South Africa introduced inflation targeting this year in a bid to reduce the CPIX benchmark to between 3% and 6% by 2002, but there have been business concerns that the move was premature for the developing economy.

The bank raised its key repo rate by 25 basis points to 12% in mid-October in an unexpected move aimed at stampi