South Africa (SA) through its central bank, the South African Reserve Bank (SARB), adopted the IT monetary policy framework in February 2000. The IT framework in SA is based on inflation expectations and hence it is forward looking in the sense that a specific target for inflation has to be met within a predetermined time. Over the past decades, the other countries in the Common Monetary Area (CMA) have harmonised their monetary and exchange rate policies. Lesotho, Namibia and Swaziland (LNS) countries have pegged their respective national currencies to the South African rand, and as long as SA pursues a price stability objective, the impact will be transmitted to these countries and their economies will be affected. The CMA arrangement has therefore prevented the LNS countries from exercising discretionary monetary policies. This framework is in practice a de facto monetary policy framework for the CMA as a whole. Needless to say, the CMA arrangement resembles an asymmetric monetary union, with bigger country, SA, responsible for monetary policy formulation and implementation.