There have been, admittedly, some encouraging developments of late, like the lower pass-through of exchange rate variations to prices and the moderation in unit labour costs. But these dynamics are not yet fully understood, and the SARB cannot therefore be sure whether they indeed represent a structural, permanent shift towards lower and more stable inflation.
Furthermore, in order to contribute to smooth implementation of fund-provisioning and asset purchases as well as secure market functioning, the Bank decided to take the following measures and initiative: (1) expand eligible collateral for the Bank's provision of credit; (2) improve the use of the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth; (3) relax the terms and conditions for the Securities Lending Facility (SLF); and (4) consider introducing an ETF lending facility.