BRIAN KANTOR: Consolation for SA if global inflation speeds up
Higher inflation will lift metal prices and perhaps strengthen the rand
11 February 2021 - 14:45
There is a hint of inflation in the frigid northern air. It is being reflected in the long end of the bond markets, which are vulnerable to unexpectedly high inflation and the higher interest rates and lower bond values that follow.
The compensation offered for bearing the risk that inflation may surprise is reflected in the spread between nominal and inflation-linked bond yields. These spreads have been widening in the US, and in low-inflation Germany and Japan...
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.