2  South Africa was no exception to these trends: in the past decade, our policy rate averaged 6.1%, down from 15.4% in the 1990s and 9.9% in the 2000s. On the positive side, greater compliance with the 3−6% inflation target range3 and lower inflation volatility have allowed for lower average policy rates and lower volatility of the monetary policy cycle.
Even so, the recovery in most advanced nations has proceeded more slowly than policymakers would have hoped. This sluggishness has been due in part to the severity of the financial shock associated with the crisis and the persistent headwinds to recovery in its aftermath.