At moments of term structure difficulties and shortening of the liquidity constraints, it is of advantage to have both: one-week and three-month liquidity providing tenders conducted weekly and monthly.
As long as this remuneration-price dynamic persists, our ability to lower interest rates is constrained. To see if higher wages and salaries will become an inflation problem, the South African Reserve Bank pays close attention to unit labour costs (or ULCs), defined as average cost of labour per unit of output. Since 2010, ULC growth has ranged between around 6 and 8 per cent.