This also allows the Regulator to spare its resources more on identifying and responding to major systemic risks and to other priorities outside the ambit of self-regulation. It is believed that self-regulation system works effectively because of the business incentive to operate in a fair, financially sound and competitive marketplace.
Countries that cumulatively produce around twothirds of global output have policy rates between zero and 1 percent, with most having rates close to zero. Meanwhile, the Reserve Bank increased the OCR by 1 percentage point over the period from March to July 2014.