South African Reserve Bank

A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets

September 21, 2023

Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More

South African Reserve Bank Interest Rate Hike Exceeds Expectations

May 25, 2023

An interest rate increase of 50 basis points to 8.25% decided unanimously today matched the prior hike in March and is the tenth increase since the rate was raised from a pandemic low of 3.50% to 3.75% in November 2021. CPI inflation of 6.8% in April exceeded the 3-6% target range ceiling, and indicators of […] More

50-Basis Point South African Central Bank Rate Hike Surpasses Expectations

March 30, 2023

The previous rate two rate hikes of 50 basis points in November and 25 basis points in January had been smaller than their predecessor moves, and this month’s decision to raise the repo rate resulted from a 3-2 split decision with two members of the South African Reserve Bank‘s Monetary Policy Committee favoring another 25-basis […] More

Today’s South African Reserve Bank Rate Hike of 25 Basis Points Was Less Than Predicted

January 26, 2023

Instead of a 50-basis point rate hike to 7.50% by a 3-2 vote of policymakers, the five-person Monetary Policy Committee voted 3-2 to increase South Africa’s repo rate to 7.25%. The interest rate had been at 6.5% coming into the pandemic year of 2020 and was sliced to 3.5% in five moves by May of […] More

South African Reserve Bank Interest Rate by Most Since 2002

July 21, 2022

Facing the most CPI inflation in 13 years (7.4%), officials at the South African Reserve Bank lifted the repo rate to 5.5% from 4.75%. This was the fifth increase since November 2021 and the largest move in almost two decades. During the first year of the pandemic, the rate had been slashed by 300 basis […] More

South African Reserve Bank Interest Rate Hiked 50 Basis Points after 4-1 Vote

May 19, 2022

With one dissent favoring a 25-basis point increment, South Africa’s Monetary Policy Committee agreed to increase its interest rate to 4.75%. This new level is 125 basis points above the pandemic low of 3.5% prevailing from July 2020 until November 2021 but 175 basis points below the pre-pandemic level of 6.5%. A released statement lays […] More

Stagflationary Outlook Gaining Traction and Western Leaders in Brussels Plan Contingent Plans for Ukraine Crisis

March 24, 2022

The world’s attention today is on Brussels where U.S. President Biden will be meeting with NATO allies, the European Council of political leaders, and Other Group of Seven members. The meetings are meant to coordinate a response to Russia’s continuing invasion of Ukraine, where the use of Russian weapons of mass destruction appears increasingly probable. […] More

Dollar Ending Week on an Up-Note But Euro Steady

March 26, 2021

The dollar overnight appreciated another 0.35% on a trade weighted basis, but strength wasn’t even this time. The dollar rose 0.6% against the yen and 1.0% relative to the Turkish lira. The key EUR/USD relationship is unchanged, and the greenback has slipped 0.4% versus the New Zealand and Australian dollars, 0.3% vis-a-vis the Canadian dollar […] More

Slew of U.S. Executive Orders and Central Bank Policy Reviews

January 21, 2021

President Biden’s inaugural address yesterday called for national unity to face down the many severe challenges now juxtaposed. 17 executive orders followed to reverse several polices of the Trump era. Contrary to warnings, inauguration day was free of domestic violence. U.S. stocks experienced their greatest advance on a presidential inauguration day since 1985, when Reagan […] More

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