ISAAH MHLANGA: SA interest rates likely to be steady for a year
Market expects the first US rate increase will come in 2023 as Federal Reserve party continues
The concern about a sustained rise in inflation, and therefore a rise in global interest rates, ultimately forcing the SA Reserve Bank to hike its policy repurchase rate should subside after the US Federal Reserve kept its target monetary policy interest rates unchanged between zero and 0.25% on Wednesday.
The Fed also left its asset purchase programme unchanged, committing to purchase at least $120bn on a monthly basis. That aside, the Fed now appears backward-looking in its monetary policy implementation, and this might have implications for the rest of the world’s monetary policy response function...