The SARB continued to drain significant amounts of liquidity on a net basis in order to maintain a shortage in the money market as part of our monetary policy implementation framework. The domestic interbank market continued to operate, with no anomalies observed in either the volumes or rates of interbank funding. In general, financial market stability continues to be observed in South Africa.
By contrast, capital spending by businesses has been lackluster, and indicators of business sentiment have been soft. The recent G-20 summit provided a constructive change in tone about trade discussions, but business sentiment and investment plans will likely remain sensitive to uncertainty around trade and the global outlook.