Oil price, inflation and exchange rate risks make rate cuts a tall order
Balancing act: oil price surge casts ominous shadow over rate cut potential amid inflation, exchange rate risks.
Balancing act: oil price surge casts ominous shadow over rate cut potential amid inflation, exchange rate risks.
Maximizing returns: Is now the perfect time for SA listed property investment in a changing financial landscape.
This year seems to be clouded by the pessimistic predictions of recession but the economic downturn should not mean the year is a write-off.
The better-than-expected GDP performance was especially boosted by the broad financial services sector, which contributed 0.5 percentage points to the growth outcome.
A strengthening dollar, the yuan’s relentless slide and war in Ukraine have been a toxic mix for emerging-market currencies this year. The MSCI’s gauge of emerging-market currencies has weakened about 8% this year, near the record annual drop of 8.7% posted during the 2008 crisis.
The Fed benchmark in a year’s time is expected to be 2.5 percentage points above the average across other major advanced economies.
If the Bank of Japan decides to shock investors and finally tighten policy, they face the turmoil inflicted on global markets by the UK’s recently-abandoned economic plan – just on a larger scale.
The yen has wiped out last month’s intervention-driven gains despite the government confirming an almost $20 billion spend and unleashing a barrage of warnings to dissuade traders from testing its resolve. Options markets are suggesting the market is bracing for another bout of yen-buying intervention.
The sight of the European Central Bank committing itself to raising interest rates twice in the next three months is a rare one.
Lesetja Kganyago said South Africa is in a strong position to deal with global monetary policy tightening, reports Bloomberg.