SA under pressure to raise interest rates – world analysts

There's an outside chance the South African Reserve Bank may raise interest rates on Thursday after the Rand slumped to a two-year low.
Published on: 

EDINBURGH — South African economists have told Bloomberg that they do not expect South Africa to hike interest rates. But, analysts elsewhere believe there is huge pressure on the country to do just that. South Africa is part of the basket of emerging market countries that have seen their currencies hit amid concerns, and sell-offs, by global investors that the raising of rates by the US Federal Reserve may play into an emerging market crisis. Low interest rates have been used since the 2008 financial crisis as a way to get the world back on an even keel, however they depressed investors' returns in developed markets. This in turn meant investors shifted into emerging markets with a view to generating better returns. – Jackie Cameron

By Netty Ismail, Justin Villamil and Lilian Karunungan

___STEADY_PAYWALL___

Loading content, please wait...

Related Stories

No stories found.
BizNews
www.biznews.com