Moreover, the linkages among monetary policy, asset prices, and the mood of global financial markets are not fully understood. Some observers have argued that U.S. monetary policy also influences capital flows through its effects on global risk sentiment, with looser policy leading to more positive sentiment in markets and tighter policy depressing sentiment.
Agribusiness can make a contribution to affordability by containing price increases as far as possible, as is indeed also the case for all other productive sectors in the economy in our quest to contain inflation. Cost containment will also help to ensure the international competitiveness of agricultural exports. The deciduous fruit industry is an important contributor to the regional GDP of the Western Cape.