We were able to soften the damage of the crisis with the policy rate, while still protecting the value of the rand, and in so doing, were able to play our part in maintaining macroeconomic stability.
Now that the global economy is recovering and inflation in many countries, including our own, is rising, we have learned from experience that we must not be tempted to loosen our grip on inflation, or to fall behind our peers as rates are normalised – the consequences would be too costly. 12