SA’s monetary policy framework and post-crisis developments Last year I pointed out that the flexible inflation-targeting framework which the country adopted back in 2000 had delivered clear benefits, contributing to a decline in the level and volatility of both inflation and nominal interest rates. These benefits remain visible today.
Internationally, credit has contracted in nominal terms in some markets. There has also been a big change in attitudes and perceptions about financial risk. Although confidence in global markets has partly returned, risk appetite now is clearly not what it was.