The second element lacking in the past policies was extensive downward pressure on the entire yield curve. While the Bank succeeded in flattening the yield curve to some extent through forward guidance and purchases of long-term government bonds with remaining maturities of up to three years, it was not sufficiently successful in exerting downward pressure to lower the entire yield curve, including longer-term yields.
Since the end of September, the all-shares price index of the Johannesburg Stock Exchange has increased again by about 19 per cent. These erratic movements in major financial aggregates created many problems for the authorities, financial institutions, businesses, private individuals, and indeed for the total economy. And yet, nobody can be blamed for it.