Figure 5
The line charts are arranged in two rows and two columns. (a): The horizontal axis is labeled “Period” and shows tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 2 to 2 in increments of 1. A shaded band and a central line are present. The title reads “r upward arrow points to r.” The central line starts near 0 at period 1, declines below negative 0.5 around period 4, rises above 0.5 around period 6, declines again below 0 around period 8, and rises toward 0.5 by period 10, while the shaded band widens as the period increases. (b): The horizontal axis is labeled “Period” and shows tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 1 to 1.5 in increments of 0.5. A shaded band and a central line are present. The title reads “r r upward arrow points to M C I underscore c n t.” The central line starts near 0 at period 1, remains close to 0 with slight fluctuations across periods, and ends near 0 at period 10, while the shaded band expands steadily from negative 1 to 1 over periods. (c): The horizontal axis is labeled “Period” and shows tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 2 to 2 in increments of 1. A shaded band and a central line are present. The title reads “M C I underscore c n t r upward arrow points to r.” The central line starts near 0 at period 1, rises above 0.5 around period 2, declines below negative 0.5 around period 4, rises above 0.5 around period 6, declines below 0 around period 8, and ends near 0 at period 10, while the shaded band widens from negative 1 to 1 across periods. (d): The horizontal axis is labeled “Period” and shows tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 1 to 1.5 in increments of 0.5. A shaded band and a central line are present. The title reads “M C I underscore c n t r upward arrow points to M C I underscore c n t.” The central line starts near 0 at period 1, remains close to 0 with slight fluctuations across periods, and ends near 0 at period 10, while the shaded band increases in width from negative 1 to 1 as the period increases. Note: All numerical data values are approximated.Regime 1 impulse response of repo rate rt on specific rt shocks and MCI_cnt shocks. Note: Blue lines denote the median responses, and shaded areas correspond to the 95% CI. Figure created by the authors, data source from FRED (2025) and SARB (2025a, b)