Bank rate was reduced from 17 to 16 per cent on 20 October 1997, and the money market shortage allowed to decline from R11.1 billion at the end of November 1997 to R7.6 billion at the end of January 1998 (and R7.2 billion last Friday). The more flexible interest rates in the money and capital markets drifted downwards.
We therefore need to treat these as existential issues for our Bank and prepare thoroughly. I do not mean to say that we should only learn from our peers abroad. We are already in a position to share our own experiences and research and to place our stamp on the global agenda.