THE Reserve Bank could raise interest rates one more time by 25 basis points before the end of 2016 should "a damaging reversal of capital flows especially in the context of Fed tightening" occur, says economic research company Capital Economics, which has a presence in several countries globally.Speculation is growing that the US Federal Reserve (Fed) may raise rates before the end of 2016. Another rate hike in the US would see emerging-market currencies such as the rand weaken. Rand weakness causes a deterioration in the inflation outlook thus supporting a rate hike.Capital Economics, in a research note released on Monday, forecast rates would remain on hold for the rest of 2017, followed by a 25 basis points cut in 2018.READ THIS: GDP is so last century, and the search for a new economic yardstick is onPrevious rand weakness and the fading effect of lower oil prices would keep inflation above the 3%-6% target band for the remainder of 2016, the economists said. Their expectation...
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