Even the sharp drop in the international oil price is unlikely to provide much reprieve to consumers as the rand’s depreciation means that petrol prices are likely to be slightly higher this year than in 2015. Persistent weakness in the South African economy poses very real risks to employment and investment growth over the longer term.
Ultimately, this means that the collective gains in prosperity which we as a nation have achieved are at risk of being eroded. Monetary policy Against this difficult economic backdrop, the Reserve Bank must continue to execute its mandate of protecting the value of the currency in the interest of balanced and sustainable economic growth.