We can also decrease imports which are rising fuelled by the increase in oil prices. To raise exports Government is implementing a new national export strategy. But this will take time. In the meantime, we must try to slow down the growth of imports. The Reserve Bank has therefore raised interest rates.
In its monetary operations, the Bank shifted the operating target from the short-term policy interest rate to the outstanding balance of current accounts at the Bank. So far, from our experience over the last two and a half years, quantitative easing has been effective in stabilizing the financial markets. It has worked to avert a credit crunch, and facilitate corporate funding.