•  Furthermore, the policy stimuli which have bolstered growth since the crisis now need to be slowly withdrawn. Responsible fiscal and monetary policies in the pre-crisis period left South Africa with considerable policy space to run fiscal deficits and enjoy record-low interest rates.
But now debt levels are once again approaching uncomfortable levels, and as I have already said, the inflation outlook requires an interest rate hiking cycle. 4. The need for reform  The above notwithstanding, South Africa does have attractive prospects for policy reform.