In addition to stabilising the labour relations environment, South Africa recognises the need to take steps to reduce our vulnerability in a world economy that remains volatile and uncertain. Sound macroeconomic management to rebuild policy space and buffers and the implementation of the new twinpeaks model of financial regulation are our highest priorities.
These efforts will complement other much-needed reforms to boost growth and employment. In the implementation of monetary policy, the South African Reserve Bank faces a difficult set of challenges, given slowing growth and rising inflationary pressures. The Bank will continue to take the necessary steps to anchor inflation expectations and achieve price stability within our mandate of flexible inflation targeting.