It is also precisely the agenda that the G-20 has been advocating. Progress has been made in some countries, especially those in the euro area that suffered the crisis worst. But on the whole it is advancing too slowly. The short-term perspective Where does monetary policy enter the picture? While structural factors drive long-term real rates, monetary policy influences interest rates over the short-term.
A discussion on the inflation outlook would be incomplete without referring to developments in the exchange rate of the rand, one of the biggest risks to the inflation outlook. The recent volatility experienced by the rand exchange rate has been driven mainly by external factors and changes in global risk perceptions.