Moreover, the underlying momentum is still supported by favourable financing conditions, a robust labour market and steady income and profit growth. Finally, signs that the past euro appreciation is dampening export growth remain limited. Extraeuro area export growth slowed down in the first two months of the year, albeit from very high levels.
Over the next ten weeks, that is during May, June and the first half of July 1998, they reduced their holdings again by R12 billion.