There is little doubt that the traditional source of foreign capital inflows, that is flows into the equity market, may remain under pressure in the coming months as a result of continued risk aversion. Despite the global turmoil, the financial account in South Africa has remained in positive territory.
Looking ahead, the question we will be asking is whether the current settings will appropriately foster conditions that will be consistent with our objectives – sustainable growth and inflation at 2–3 per cent. Over the long run, though, the bigger question, for all of us here tonight and in the business and policy making community generally, isn’t about the monthly interest rate decision.