MAMOKETE LIJANE: Bank likely to raise rates due to risk of turbulence and capital flight
As the two events would hit the rand and thus be inflationary, the MPC would not want to go into such a period with figures that are too low
29 March 2023 - 05:00
The world is at a monetary policy inflection point, where policy moves from hawkish to dovish, led by the US. The Fed has hiked rates 4.75 percentage points since March 2022, a tightening pace last seen in the early ’80s Volker era. The aggression of this tightening cycle extended to the rest of the world.
Of the 38 central banks tracked by the Bank for International Settlements, 34 hiked a total of 207 times in the last year, showing an unprecedented co-ordination in monetary policy moves. On average, central banks raised rates 440 basis points in the past year. ..
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.