The local currency could be in for more volatility as political push-and-pull raises uncertainty
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Central bank governor Lesetja Kganyago said the job of tackling inflation was not done yet
Inflation accelerated to 4.8% year-on-year in August, up from 4.7% in July, according to data from Statistics South Africa
Chile and Brazil are leading the pack with their recent interest rate cuts but South Africa is on its own timeline
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The Reserve Bank has already lifted rates 10 times since November 2021
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Tighter financial conditions will hurt an economy already brought to its knees by the government
The recent rand crash has led some to believe another 50 basis point rise is on the horizon, despite a view that further hiking will do little to tame inflation
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The currency, which is usually a bellwether for other emerging markets, has diverged from global trends – thanks in large part to
the energy crisis
One year on, the Kremlin’s impact appears to be retreating — but, amid uncertainty about the global economy’s growth trajectory, risks to inflation remain
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Decisions from a decade ago have come back to haunt economies – policymakers should be vigilant
Inflation has breached the ceiling of the Reserve Bank’s target range for the first time in more than five years
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A deep downturn is unlikely, analysts say. But, if it does happen, another recession will be even more difficult to recover from
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Central banks massively underestimated inflation risks as economies bounced back from the pandemic-induced slump
South Africa was well-placed for the 2008 crisis. But R3.18-trillion debt and low growth hamper its ability to limit the economic effects of Covid-19
The US leader doesn’t understand global trade and so his decisions will harm the world economy
By
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/ 17 September 2008
Capping an extraordinary day in financial markets, US authorities pieced together an emergency -billion rescue of insurance company AIG.
Restoring financial market stability is a top priority for the United States Federal Reserve, Fed chairperson Ben Bernanke said on Tuesday.
Oil prices hovered near a barrel on Monday, swinging between gains and losses as traders weighed global supply concerns and a stronger dollar.
The scale of losses and the economic fallout from the global credit crunch may not be as bad as feared and subprime losses could end up costing less than half market forecasts, the Bank of England said on Thursday. The central bank is still concerned about the consequences of the credit crisis but Deputy Governor John Gieve said conditions could stabilise soon.
Increasing confidence that the worst of the credit crisis is over boosted world stocks on Monday while inflation concerns grew with oil prices heading towards a barrel. Investors have stopped taking it for granted the United States Federal Reserve will cut interest rates later in the week, although most still expect such a move.
Oil hit a new record near a barrel on Monday, boosted by a string of bullish factors that include a United Kingdom refinery strike and disruptions to Nigeria’s output that highlight the market’s anxieties over threats to supply. Prices held firm below earlier highs, despite a rally in the US dollar versus the euro and yen.
The International Monetary Fund (IMF) called on Saturday for ”strong action” and ”close cooperation” to combat the financial crisis that is battering the world economy. The IMF, wrapping up a meeting in Washington, DC, stressed ”the challenges facing the world economy are of a global nature”.
Masaaki Shirakawa, the Bank of Japan’s acting governor, has warned that the country’s economy faces an uncertain future. It comes at the end of a week in which the Nikkei share index sank to its lowest level for almost three years. Shirakawa took up the post after Parliament failed to agree on a long-term appointment.
The JSE remained in the black by noon on Wednesday, with a trader explaining that the United States Federal Reserve’s rate cut was adding buoyancy to the market. "The Fed’s rate decision, which saw rates decline from 3% to 2,25%, is still adding buoyancy to the JSE," he said.
An emergency move by the United States Federal Reserve to cut its discount rate has continued to weigh on markets, sending the JSE below the 30 000-level by midday on Monday. The Fed’s move to cut its discount rate, its lending rate to financial institutions, to 3,25% from 3,5%,
JP Morgan Chase set a deal to buy stricken rival Bear Stearns for a rock-bottom price, while the United States Federal Reserve expanded lending to securities firms for the first time since the Great Depression to prop up the financial system. The shock news, the biggest sign yet of how devastating the credit crisis is for Wall Street, slammed the US dollar to a record low against the euro,
The global credit crunch claimed its biggest victim yet on Friday when the United States Federal Reserve orchestrated an emergency bail-out for Bear Stearns after a cash crisis prompted a run on the US’s fifth-biggest investment bank. President George Bush sought to calm fears of a deep recession in the world’s biggest economy.
Banks and financials helped the JSE advance further by midday on Wednesday as they cheered the move by the United States Federal Reserve to raise liquidity in financial markets. At noon, the JSE’s broader all-share index had gained 1,35%. Financials collected 1,94%, while banks were up 1,67%.
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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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/ 26 December 2007
When the newly created euro slumped to an all-time low in 2000, detractors lined up to predict a dark future for the young currency. The euro marks its ninth birthday on January 1, with detractors now warning of grave consequences on account of its strength.
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/ 30 October 2007
The JSE rose modestly at noon on Tuesday as investors became more optimistic that the United States Federal Reserve would cut interest rates, which would bolster Wall Street. Investors cheered the news that Tokyo Sexwale’s Mevelaphanda group plans to buy up to 30% of Johncom’s to-be-formed Opco.
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/ 20 September 2007
United States Federal Reserve Chairperson Ben Bernanke told Congress on Thursday that the credit crisis has created ”significant market stress” and offered fresh assurances that regulators will take steps to curb fallout related to the mortgage mess.