Figure 6
The four panels are arranged in two rows and two columns. The top left panel labeled “(a)” shows a line chart with a horizontal axis labeled “Period” and tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 0.5 to 1.5 in increments of 0.5. A shaded band and a central line are present. The title reads “r upward arrow points to r”. The central line starts near 0.5 at period 1, rises toward 0.8 around period 3, and gradually declines toward 0.3 by period 10, while the shaded band widens from around 0.2 to 1.2 near period 2 and extends and moves along the line by period 10. The top right panel labeled “(b)” shows a line chart with a horizontal axis labeled “Period” and tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 1 to 1 in increments of 0.5. A shaded band and a central line are present. The title reads “r upward arrow points to M C I underscore c n t”. The central line starts near 0 at period 1, rises slightly above 0 around period 2, and then declines below 0 toward negative 0.3 by period 10, while the shaded band expands from around negative 0.5 to 0.6 near period 2 and extends further downward and upward as the period increases. The bottom left panel labeled “(c)” shows a line chart with a horizontal axis labeled “Period” and tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 1 to 1 in increments of 0.5. A shaded band and a central line are present. The title reads “M C I underscore c n t upward arrow points to r”. The central line starts near 0 at period 1, rises slightly above 0 around period 2, and then gradually declines toward 0 by period 10, while the shaded band widens from around negative 0.5 to 0.7 near period 2 and spreads further as the period increases. The bottom right panel labeled “(d)” shows a line chart with a horizontal axis labeled “Period” and tick labels from 0 to 10 in increments of 2, and a vertical axis ranging from negative 1 to 1 in increments of 0.5. A shaded band and a central line are present. The title reads “M C I underscore c n t 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 variation across periods, and ends near 0 at period 10, while the shaded band increases in width from around negative 0.5 to 0.7 and continues expanding across periods. Note: All numerical data values are approximated.Regime 2 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)