We reduced the pace of our monthly net asset purchases and removed some so-called “easing biases” in our communication. This notwithstanding, our overall stance continues to be very accommodative. The cautious approach taken by the Eurosystem is inspired by the multitude of uncertainties that remain present in the economy and that are complicating our understanding of how the economy exactly works.
Moreover, although the general weakening in the dollar has at times been a source of strain on externally-competing sectors of our economy, we have over the past 18 months seen the rand tend to trade on a more settled basis within a broad trading range, with less volatility.