•  The focus of monetary policy on the single objective of price stability is key to convincing savers and investors that, in taking their decisions, they do not need to factor in a large inflation risk. It is only in that way that we can get sustainably lower interest rates.
The Financial Stability Department is in the process of developing a toolkit of macro-prudential policy instruments in addition to further refining its monitoring framework for financial stability, developing a top-down stress testing model and preparing policy proposals for the development of a resolution framework for the systemically important financial institutions and markets in South Africa.