BADGER
MICHAEL AVERY: Reserve Bank’s MPC members sitting on a real dilemma
The Bank’s primary mandate — to protect the value of the currency — will be severely tested
Watching Nicole Magolie stretch our national anthem out like a tired ’80s cassette tape in Genoa on Saturday I was reminded of the five members of the SA Reserve Bank’s monetary policy committee sitting uncomfortably on the horns of a real dilemma this week — and trying to get up to speed on how to respond.
A raft of US Federal Reserve speakers tried to stem the rising tide of optimism emerging in markets about a possible pivot following a slightly cooler than expected October inflation reading. St Louis Fed president James Bullard suggested rates could now settle at 5%-7% in the US, which would necessitate central banks around the world following in lockstep to avoid the severe negative fallout of such a move on their currencies...
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