However, I consider that the additional effects of QQE have been diminishing, given that the continued decline in long-term real interest rates, which is considered to be the main source of policy effects, already has come to a halt. On the other hand, numerous side effects of QQE arising from the Bank’s JGB purchases have not diminished; rather, they seem to be increasing steadily.
For the first time in many years, the outlook is finally looking promising, with global growth gathering momentum, without yet generating too much inflation. Financial markets have generally performed well. South Africa faced a particularly challenging domestic environment, which affected growth performance, mainly because of low business and consumer confidence. We failed to fully take advantage of the global cyclical upswing.