With the MPC having hiked the rate by 50bp, a smaller than expected increase, the rand is expected to remain under
pressure. The list of negatives stacked against the currency will likely outweigh policy rate support.
Adjusting for volatility, ZAR is not particularly attractive. Although it is the second highest-yielding currency in EM, much of the carry [...]
Tags: ZAR
Evidence is mounting that tight monetary policy is finally slowing the economy.
Business confidence has slumped, house price growth has ground to a halt, retail sales are weak and there has been a modest slowdown in consumer borrowing. Electricity shortages also intensify the risk of a slowdown as rationing is planned while Eskom invests in new [...]
Tags: ZAR