It is clear that we cannot afford to be complacent, as the risks related to global monetary policy developments remain high given the globalised nature of the world economy. This is unchartered territory; the risks are tilted to the upside, with significant implications for financial stability.
On the positive side, we should remember that the beginning of the US monetary policy tightening cycle will not necessarily be bad for the world, in particular for South Africa and other emerging-market economies, as it would indicate that the US economy is in better shape and therefore supports the global recovery.