Figure 7
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 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 r”. The central line starts near 0.4 at period 1, declines below 0 around period 4, rises toward 0 around period 7, and remains near 0 through period 10, while the shaded band widens from near 0.5 at period 1 to extend above 1 and below negative 1 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 t v p”. The central line starts near 0 at period 1, rises slightly above 0 around period 2, declines below 0 around period 4, and returns toward 0 by period 10, while the shaded band expands from near 0.5 to above 1 and below negative 1 across periods. 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 2 to 2 in increments of 1. A shaded band and a central line are present. The title reads “M C I underscore t v p upward arrow points to r”. The central line starts above 1 at period 1, peaks near 2 at period 2, drops below negative 1 around period 3, rises toward 0 around period 5, and remains near 0 through period 10, while the shaded band widens across periods. 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 2 to 6 in increments of 2. A shaded band and a central line are present. The title reads “M C I underscore t v p upward arrow points to M C I underscore t v p”. The central line starts above 4 at period 1, drops sharply below 0 around period 2, reaches near negative 1 around period 3, rises toward 0 around period 4, and remains close to 0 through period 10, while the shaded band gradually widens across later periods after period 2. Note: All numerical data values are approximated.Regime 1 impulse response of repo rate rt on specific rt shocks and MCI_tvp 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)