While these actions have removed acute financial stability risks, the transmission mechanism into the real economy remains generally impaired, resulting in what continues to be a slow, unbalanced and fragile recovery.
As you are aware, possible risks attached to the timing and pace of the reversal of these extraordinary measures, are the subjects of intense debate at the moment, including the possible impact on higher yielding assets of emerging economies, such as South Africa. Unfortunately, despite the easing in some global risks, the challenges in the domestic environment have intensified.