US inflation-associated rate increases could see Reserve Bank forced to follow suit
As US treasury yields rise, the premium offered by investing in countries like SA narrows, resulting in more money leaving local shores
11 May 2022 - 21:20
US inflation came in hotter than expected in April, causing US treasury yields to rise above 3% amid growing fears of the threat of stagflation — when GDP grows at a slower rate while inflation accelerates.
The higher-than-expected US inflation figures have seen calls for even more aggressive action from the US Federal Reserve (Fed), which recently raised its lending rate by 50 basis points to a range of 0.75% to 1%, its biggest increase in more than two decades...
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