Rand support could mean 75 basis points in rate cuts over 12 months, analysts say
The benefit to the local currency from investors’ search for yield could give room for three cuts by January 2020, says Bank of America Merrill Lynch
15 July 2019 - 15:03
Interest-rate cuts by the US Federal Reserve could offer room for the Reserve Bank to cut rates by 75 basis points by January 2020, and global investors’ search for yield could see the rand at R13.90/$ by the end of 2020, according to analysts at Bank of America (BofA) Merrill Lynch.
The rand should continue to benefit from risk-on sentiment towards emerging markets, as markets price in a total of 50 basis points in interest-rate cuts by the US Federal Reserve over the next two meetings, BofA analysts wrote in a note on Monday...
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.