The Eurosystem offers on each operating day two standing facilities which can be accessed at the discretion of individual banks, namely a deposit facility and a marginal lending facility.
Such occurrences would include markedly lower than expected output or expenditure trends, or a sustained further appreciation of the rand exchange rate, which overall would lead to a significant decline in the long term inflation forecast. Conclusion Monetary policy always has to be implemented in a forward-looking manner, given the lags between a policy change and its full impact on the economy.