Let us also remember that we start 2015 with a credit rating that is two notches into investment grade territory. Higher state spending on infrastructure and the implementation of projects under the public-private partnership program should also provide stimulus for growth moving forward.
The impact of the exchange rate has become even more relevant given increasing evidence of monetary policy spill-over effects from advanced economies. In particular, low interest rates and quantitative easing in the US and associated capital flows (and reversals) have impacted on the rand, with attendant consequences for inflation and inflation expectations.