This comes as inflation eased to 4.4% in August, below the midpoint of the Reserve Bank’s 3-6% target band
Better than expected inflation outcomes domestically and globally back the case for the central bank to cut the repo rate to 8%, economists said
Some strategies for financial resilience
Speakers at the South African Reserve Bank’s biennial conference seemed to favour a ‘higher for longer’ approach to interest rates amid ongoing economic uncertainty
The slowdown will probably influence the central bank’s decision on interest rates
The headline rate eased to 6.3% year-on-year in May, down from 6.8%
The architecture of the global financial system hurts emerging market economies but the alliance has yet to offer an alternative
The turmoil, which some say was inevitable given aggressive hiking cycles, exposes the dependency of advanced economies on cheap credit
Analysts expected inflation to continue on a downward trajectory in February after falling to 6.9% in January; instead, it reached 7%
Later this month the South African Reserve Bank will decide how big a rise the country’s flailing economy can take
The ANC has made the call for more flexible monetary policy before, but has dithered in seeing it through
Economy hitting geopolitical tensions, pressure on consumers and load-shedding will likely stick around
There is much to suggest that global economic disaster is not assured, or even likely, in the near future
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’
The government should rather consider a targeted approach to reducing inflation
Most household lack access to adequate food to meet dietary needs for a healthy, active lifestyle
In a split decision, the bank’s monetary policy committee increased the repo rate, which affects the cost of borrowing, by 75 basis points
This is according to some economists, who say the Reserve Bank got ahead of the curve before inflation became entrenched
High food and fuel prices have prompted trade unions to make bigger wage demands, which will exert upward pressure on longer-term inflation
The rand has managed to withstand even the strongest global headwinds, but it is unlikely it will continue to hold steady in the wake of the Fed’s aggression
Inflation fears should have inspired a run on gold, but the asset may have lost its relevance
The monetary policy committee has voted to lift the repo rate by another 25 basis points as advanced economies mull policy tightening
Inflation rose well beyond the Reserve Bank’s midpoint target in August
The MPC decided unanimously to leave the benchmark repurchase rate at 7%.
South Africa is among the developing nations who will be worse affected by the US tightening – the first rate hike in seven years.
Fed chair Janet Yellen’s raising of US interest rates has prompted the European banker to loosen monetary policy to stimulate consumer prices.
The Great Depression is on people’s minds as the US weighs the risk of premature policy tightening.
Reversing QE has begun and the challenge now is for the Fed’s new chairperson to keep it in check.
Further tapering of monetary stimulus, announced by the US Federal Reserve, has seen the dollar climb while other currencies feel the pressure.
Part of the US Federal Reserve chair’s legacy is a country in recovery, but it’s not yet back to banking business as usual as Bernanke steps down.
South African Reserve Bank and US Federal Reserve policy meetings is foreseen to dominate the week, although neither is expected to change rates.