Carol Paton Editor at Large

The SA Reserve Bank said on Thursday that its decision to buy government bonds as part of its attempts to stabilise markets is not a form of quantitative easing” and that it does not seek to influence prices or fund the government directly.

The Bank announced on Wednesday that it would enter the secondary, short-term funding markets to provide liquidity for maturities of up to 12 months to deal with liquidity strains in funding markets in the wake of market volatility sparked by the spread of the coronavirus.

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