The year is off to a rocky start for financial markets, with the rand-dollar exchange rate slumping by more than R1.00/$ since the middle of December (from R17.86/$ to above R19.10/$ by January 10) while long-term interest rates (the yield on 10-year government bonds) spiked by about 0.5% (from 10.18% to 10.6%).

This is to a large extent underpinned by the rout in global financial markets, which reflects the elevated uncertainty about the policies that will ultimately be implemented by the incoming Trump administration, with the president-elect proposing potentially inflationary policies during his recent election campaign...

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