The short-run benefit of a surprise lower interest rate is transformed by higher inflation into a long-run cost to growth. When inflation is higher than that of our trading partners, we suffer a continuous loss of competitiveness. High inflation overall also generally means higher inflation for poorer and less-skilled South Africans than for the wealthy.
But the doors of our institution remain open for all ideas which create new possibilities, for new objectives that shift horizons. It is only in this way that we will be ready to tackle new challenges.