International factors could have a more significant role to play in South African financial markets in coming months, particularly those coming from the US. The US Federal Reserve should start to cut interest rates in the next few months, bringing welcome relief after more than a year of the highest interest rates the US has seen in more than 20 years. But while the economic dark clouds from high US interest rates might clear, new storm clouds loom in the shape of November’s presidential election.

The Fed has held interest rates at a high 5.5% since July 2023. If the Fed cuts rates in September, as we expect, it will have held the peak rate for 15 months. Bank of England chief economist Huw Pill said some time ago that the interest rate profile from the BoE would resemble Table Mountain and this has certainly been the case in the US as well, in addition to many other central banks, not least the South African Reserve Bank...

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.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.