However, as the emerging-markets crisis made itself felt, prime rose to a maximum of 25,5 per cent in August and September 1998 as one of the policy measures used to contain the decline in the exchange rate of the rand during that period, before starting to decline during October. For the year as a whole it averaged 21,8 per cent.
A medium-term, stability-oriented approach for economic policies would eliminate a great deal of the uncertainty currently overshadowing long-term planning and perspectives which would also have positive effects over the shorter term. In fact, at present, the situation of subdued economic growth and the stronger external value of the euro make the structural reforms even more necessary.