This is the case, of course, as long as the depreciation does not spill over into lasting and more broad-based price pressures, or threaten the stability of a country’s financial system. The risk of price pressures is where the main focus lies for the SARB. Admittedly, financial stability is also an integral part of our mandate and focus.
Corporate sector governance and the efficient reallocation of capital in the business sector have often been at the centre of attention in Japan too. Demographic developments contribute to a better understanding of the subdued economic performance, especially in Japan, where the problem of an ageing population emerged earlier.