MAMOKETE LIJANE: Bank likely to raise rates due to risk of turbulence and capital flight

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MAMOKETE LIJANE: Bank likely to raise rates due to risk of turbulence and capital flight
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As the two events would hit the rand and thus be inflationary, the MPC would not want to go into such a period with figures that are too low

The world is at a monetary policy inflection point, where policy moves from hawkish to dovish, led by the US. The Fed has hiked rates 4.75 percentage points since March 2022, a tightening pace last seen in the early ’80s Volker era. The aggression of this tightening cycle extended to the rest of the world.

Of the 38 central banks tracked by the Bank for International Settlements, 34 hiked a total of 207 times in the last year, showing an unprecedented co-ordination in monetary policy moves. On average, central banks raised rates 440 basis points in the past year. ..

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