As the MPC has emphasised on numerous occasions, a firm commitment by government to credible structural policy initiatives and implementation is required to make an appreciable impact on employment and potential output. At the March MPC meeting, we warned that the global risks in particular could upset the improved inflation outlook. Unfortunately, these risks, which I have highlighted earlier, have taken centre stage.
Since April, the rand has depreciated, alongside other emerging market currencies. Together with the higher international oil prices, the Page - 4 - of 9  depreciation of local currency has resulted in domestic petrol prices reaching record highs in nominal terms. Furthermore, risks from higher electricity prices have also emerged.