Bonds weaken slightly as BoE retains rate and ECB maintains dovish outlook
South African bonds were slightly weaker on Thursday afternoon as the Bank of England kept rates unchanged, while the US Federal Reserve increased rates by 25 basis points on Wednesday. The Bank of England held its benchmark interest rate steady at 0.5%, as expected, and said Chancellor of the Exchequer Philip Hammond’s latest tax and spending plans should nudge up growth and inflation, Dow Jones Newswires reported. The Bank voted 9-0 to leave interest rates on hold, saying data pointed to growth slowing in the fourth quarter, adding that inflation was near its peak after rising to 3.1% in November. It also highlighted Brexit-related risks, saying it remained the most significant influence on the outlook, the newswire reported.
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.