Turning to inflation prospects, there had been no indication during the first half of last year of any impending upward movement in inflation. South Africa, in line with most of its trading partners, had experienced a slowdown in economic growth during the first half of 2001, but both fiscal and current account performance was strong and inflation was falling.
There had been sustained fiscal rectitude and very strong revenue growth with the resultant favourable budget deficit to GDP outcome for fiscal 2001/02.