The turmoil, which some say was inevitable given aggressive hiking cycles, exposes the dependency of advanced economies on cheap credit
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Later this month the South African Reserve Bank will decide how big a rise the country’s flailing economy can take
Prices have slowly retreated from their July peak, when inflation increased at its highest rate since 2009
Consumer inflation hit 7.6% year-on-year in October, bucking the downward trend that had been anticipated after the July ‘peak’
This is according to some economists, who say the Reserve Bank got ahead of the curve before inflation became entrenched
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The rand has depreciated as investors gauged that a surge against the dollar, after the US Fed suddenly maintained monetary stimulus, was overdone.
The rally of the rand in recent days will likely continue to lose steam as the market looks out for a decision to cut monthly bond purchases.
Gold added $24,95, or 2,49%, to trade at $1 025,05 by 1.30pm on Monday — this after rising more than 3% to a record $1 032,60 a troy ounce in overnight trade. Oil prices have also rallied in response to the dollar’s weakness overnight with Nymex crude setting a fresh all-time high of $111,80.
Platinum struck a record for the second straight day on Tuesday, catching up with gold as a weaker United States dollar and persistent supply problems in South Africa ignited buying from speculators and investors. Platinum’s gains pushed up sister metal palladium to a six-and-a-half year high.
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/ 22 January 2008
The United States Federal Reserve on Tuesday slashed a key interest rate by a hefty three-quarters of a percentage point, the biggest cut in more than 23 years, after a two-day global stocks rout sparked by fears of a US recession. ”The Fed is very, very, very worried,” said John Tierney, an analyst at Deutsche Bank.
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/ 22 January 2008
The United States Federal Reserve on Tuesday slashed benchmark US interest rates by three-quarters of a percentage point in an emergency bid to lend support to a US economy some fear is on the verge of recession. The Fed’s action took the key federal funds rate, which governs overnight lending between banks, down to 3,5%.