The exchange rate in this case works as an automatic stabilizer via relative price movements. BIS Review 101/2010    Interest rate structure that carries with it cost of investment as well as inflation expectations have declined drastically since the middle of 2009. Distinguished members, ladies and gentlemen 8.
The main export sectors of the South African economy therefore face a challenging outlook, from both external and internal sources. Commodity prices, apart from the gold price, have not generally recovered to pre-crisis levels. At the same time input costs, particularly electricity and wage costs, have risen significantly, contributing to the contraction in the sector in 2012.