5 Organization of the Petroleum Exporting Countries 6 South African Reserve Bank 7 Monetary Policy Committee  Page - 3 - of 11  The inflation forecast presented to the MPC at its most recent meeting showed a marked improvement.
The fact that with the negative deposit facility rate banks now have to pay money for such deposits may be particular relevant in that respect. The lower deposit facility rate also prevents a compression of the interest rate corridor. Such a compression could negatively affect money market activity as banks lack incentives to actively manage their liquidity position.