Over the last week the market likely started pricing in that SA rates will increase.JOHANNESBURG – This week, markets across the world were rattled by clear indications from the US central bank that it is going to hike rates, fast.Minutes from the Fed’s latest monetary policy meeting, which were released this week, showed that officials were concerned about inflation and confident about the US economy’s ability to take interest rate hikes in its stride.“It may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated,” the minutes read.This sent a shockwave through global markets, with shares selling off as investors considered the negative impact of higher interest rates on consumer spending and company debt levels.It was also supposed to hurt the rand: the dollar will earn higher interest rates, which means that the rand would look less attractive in comparison.Instead, the rand rallied. After trading above […]
BUOYANT RAND
