Feeling the Squeeze

SOUTH AFRICA - Report 18 Feb 2014 by Iraj Abedian
As was the case in other emerging markets economies (EMEs) hit by the exodus of capital – due to a reduction of monetary stimulus in the US – the South African Reserve Bank (SARB) swung into action by raising the benchmark interest rate by 50 basis points to 5.5% per year in February 2014 (see Graph 1). Given its inflation targeting approach in conducting monetary policy, the SARB got terrified by a significant deterioration in its inflation outlook based on a weakening rand assumption. However, in such turbulent times, the best bet for the SARB would have been to remain in monitoring mode ...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.