The South African Reserve Bank (SARB) served as the principal underwriter. Following an investigation by a Commission of Inquiry chaired by Dr J. Jacobs 1 , the market opted for self-regulation in the form of the Bond Market Association (BMA), comprising bond issuers, intermediaries, banks, brokers and investors.
In other words, should monetary policy simply set interest rates on the basis of market expectations? Today it is generally accepted that monetary policy should be sufficiently transparent so that the market can discount changes in monetary policy in advance. If the market correctly anticipates monetary policy actions, there will be little reaction to monetary policy announcements.