The JSE opened flat on Thursday ahead of Thursday’s interest-rate announcement by the Reserve Bank, as the rand gained on a weaker dollar after the latest US federal open market committee minutes showed it maintained its dovish stance. The Reserve Bank was expected to keep rates unchanged but the forward-looking statement would be keenly watched by investors for any clues on the prospects for rate decreases following Wednesday’s better-than-expected inflation data. The Federal Reserve’s minutes indicated a cautious stance among members. US interest rates are still set to rise further in 2017 but factors impeding US growth and the uncertainty created by President Donald Trump’s erratic behaviour, were noted. "The minutes revealed that despite the slowing growth rate, most of the committee members agreed to hike interest rates soon … they also talked about unwinding the $4.5-trillion balance sheet," analysts at Nedbank Corporate and Investment Banking said. A more hawkish stance from ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.