Some of the factors contributing to this trend in recent times are: (i)  The decline in the contribution of gold mining sector to growth and the decline in the role of gold globally;  (ii)  Binding constraints related to infrastructure bottlenecks;  (iii)  Skills shortages and mismatch;  (iv)  The dominance of low-cost production bases which are export oriented in many emerging market economies; and  (v)  Sluggish growth in SA’s key trading partners.
With the measures that have been put in place, monetary policy has responded to the outlook for low inflation, a weakening growth momentum and continued subdued monetary and credit dynamics. Our accommodative monetary policy stance will underpin the firm anchoring of medium to long-term inflation expectations, in line with our aim of achieving inflation rates below, but close to, 2%.