( * ) ( annual change, percent ) 10 10 - 2 - 2 - 2 - 2 - 4 - 4 - 4 - 4 07 08 09 10 11 12 13 14 15 dec. 2012 report 07 08 09 10 11 12 13 14 15 mar. 2013 report ( * ) gray area, as from the first quarter of 2013, shows forecast. sources : central bank of chile and national statistics institute ( ine ). bis central bankers ’ speeches figure 5 mpr and expectations ( percent ) mpr fbs, march 2013. q2 ees, march 2013 source : central bank of chile. figure 6 real exchange rate ( index, 1986 = 100 ) rer 1993 - 2012 average 1998 - 2012 average source : central bank of chile. bis central bankers ’ speeches figure 7 rers of commodity - exporting countries ( * ) ( index, 2000 - 2007 average = 100 ) emerging developed 05 06 07 08 09 10 11 12 13 05 06 07 08 09 10 11 12 13 chile colombia peru brazil canada chile new zealand norway ( * ) an increase indicates depreciation. source : bis. czech rep. usa europe sweden canada norway n. zealand australia colombia mexico peru chile brazil figure 8 monetary policy rate ( percent ) sources : central bank of chile and central banks of respective countries. bis central bankers ’ speeches

march and april. the south african rand depreciated by 22 % between february and the end of april. over the same period, the yield on the 10 - year government bond rose by more than 200 basis points, and money market liquidity was thin. although many of these moves have been reversed, on balance, capital inflows remain below those of our emerging market peers. page - 3 - of 9 inflation has moderated since the beginning of the year. consumer price inflation fell to as low as 2. 1 % year on year in may, down from 4. 6 % three months earlier. longerterm inflation expectations have continued to decline towards 4. 5 %, which is the midpoint of the inflation target range. inflation expectations for 2020 are at around 3. 9 %, the lowest in recorded history. consequently, the sarb ’ s inflation forecast now sees core inflation remaining within the lower half of the target range for the remainder of the forecast period, that is until the end of 2022. the sarb expects headline inflation to average 3. 4 % in 2020, and 4. 3 % in both 2021 and 2022. this benign inflation outlook has allowed the monetary policy committee ( mpc ) room to reduce the repurchase rate ( repo rate ). the south african reserve bank ’ s actions during the covid - 19 crisis as a reminder, let me briefly outline the measures undertaken by the sarb since march. monetary policy committee decisions the mpc has reduced the repo rate by a cumulative 275 basis points, to 3. 50 % per annum. four repo rate cuts have been made since march 2020, as follows : a 100 basis points cut in march 2020 ; a 100 basis points cut at a special mpc meeting in april 2020 ; a 50 basis points cut in may 2020 ; and a 25 basis points cut in july 2020. domestic money market liquidity management the sarb acted swiftly to ensure the continued smooth functioning of financial markets. revisions to liquidity management operations comprised four elements. page - 4 - of 9 first, we put in place intraday overnight supplementary repurchase operations ( iosros ) aimed at providing liquidity support to commercial banks. second, we introduced a three - month term repo facility, which is offered in addition to the weekly main refinancing operations. the sarb has indicated its willingness to offer longer - term repo facilities of up to 12 months, subject to liquidity conditions in