South African Reserve Bank
South African Reserve Bank
November 19, 2020
Although the South African Reserve Bank’s repo rate was left unchanged at 3.5%, the vote not to ease of 3-2 was razor-thin. Each dissenter preferred a 25-basis point cut to add to earlier easing moves this year of 25 basis points in January, 100 bps each in March and April, 50 bps in May and […] More
Mixed Signals this Friday
September 18, 2020
China’s Shanghai Composite equity index jumped 2.1%, but share prices fell 1.4% in New Zealand and 0.3% in Australia and India. Japan’s Nikkei rose only 0.2%, and Spanish stocks have so far dropped 1.2% on the day. The dollar climbed to another record high against the Turkish lira and shows a year-to-date advance of more […] More
By 3-2 Vote, South African Central Bank Officials Cut Repo Rate by 25 Basis Points
July 23, 2020
The fifth cut of the South African Reserve Bank repo rate this year brings the total drop of 2020 to 300 basis points. A released statement expects one more 25-bp reduction to be made around the final quarter of the year. The projected contraction of real GDP was revised a touch higher to 7.3%. “economic […] More
South Africa’s Fourth Central Bank Rate Cut since January
May 21, 2020
The South African Reserve Bank repo rate was lowered 50 basis points to 3.75% following a 3-2 vote, with dissents favoring only a 25-basis point reduction. Today’s easing brings to 275 bps the total rate reduction since mid-January. In a released statement, the Monetary Policy Committee anticipates two cuts of 25 basis points each in […] More
100-Basis Point Cut in South Africa’s Central Bank Policy Rate
April 14, 2020
Officials at the South African Reserve Bank unanimously authorized the second full percentage point reduction of their key interest rate in the past four weeks. The rate, which had crested at 6.75% after 175 basis points of tightening in 2018, was lowered to 4.25%. The latest 100-basis point reduction was twice as much as analysts […] More
Easter Break Over but Covid-19 Pandemic Continues to Dominate Financial Market News
April 14, 2020
Having made the three biggest mistakes in handling the pandemic, the United States has now taken the global lead in both number of cases (30.3% of the worldwide total) and deaths (23,644 or 19.6% of the total). The mistakes were 1) being late to socially distance people, 2) deficient testing to identify asymptomatic carriers of […] More
South African Reserve Bank Repo Rate Sliced 25 BPS to 6.25%
January 16, 2020
Policymakers at the South African Reserve Bank voted unanimously to cut the central bank’s repo rate by a further 25 basis points to 6.25%. This follows an initial 25-bp cut last July that reversed a 25-bp hike in November 2018. In a released statement, bank officials announced downward revisions to the growth path, which overall […] More
Financial Markets Comparatively Steady after Signing of Phase I U.S.-China Trade Deal
January 16, 2020
The dollar rose 0.1% overnight against the yen but slipped by 0.3% versus sterling and the Australian dollar, 0.2% relative to the Chinese Renminbi and Swiss franc, and 0.1% versus the euro and loonie. Share prices in the Pacific Rim advanced 0.7% in Australia, New Zealand and Singapore, 0.8% in South Korea, 0.1% in Japan, […] More
Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth
September 19, 2019
Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More
South African Repo Rate cut 25 Basis Points to 6.5%
July 18, 2019
The South African Reserve Bank by unanimous vote has implemented its first interest rate cut in 16 months, a 25-basis point cut of the repo rate to 6.5%. A released statement observes moderating inflation expectations, signaled policy easing by advanced economy central banks, weaker-than-anticipated global economic activity, and “escalating trade and geo-political tensions.” Officials expected […] More
