If the inflation gap widens, and the monetary policy stance remains unchanged, it follows that there is a “missing stimulus” to which we may need to respond. At its meeting on 22 January, the Governing Council assessed that two factors had come together which had led to a widening of this “inflation gap” and had hence rendered our stimulus insufficient.
The management was also requested to dispose of Ellerine Holdings Limited. At the initiative of the SARB, discussions were also held with ABIL’s board to appoint a specialist team to assist with restructuring options. In the six month period to March 2014, ABIL posted a headline loss of R 3.1 billion.