Recent monetary policy The past year was a challenging one for the conduct of monetary policy. At the beginning of the year, the view that policy normalisation in the advanced economies would begin by the middle of the year implied an expected moderation of capital flows to emerging markets during the year.
Domestic growth was also expected to be positively affected by the improved global environment. At that stage, when the repurchase rate was still at 7 per cent, the exchange rate was at around R7,60 against the dollar and inflation expected to average just under 6 per cent over the year.