By maintaining a credible monetary policy and a short-term interest rate that compensates investors for risk, we help to maintain capital flows into South Africa. Our repo rate setting is accommodative relative to our estimate of neutral, and it is low compared with historical averages.
At the same time, the Bank will continue to contribute to the government's other economic goals, especially growth and employment, as long as doing so does not adversely impact on the objective of price stability. The Bank will also continue to support financial stability. This issue, the Bank of Israel’s objectives, leads me to the Bank’s role in the economy.