Reserve Bank of South Africa |

South Africa, in Grip of Recession, May Mull Rate Increase

JOHANNESBURG (Capital Markets in Africa) – South African policy makers may be about to consider whether to follow counterparts from Russia to Turkey and raise interest rates — even when the country is battling a recession. Investors and economists are divided on the chances that officials will respond to emerging-market turmoil with the country’s first upward move in borrowing costs since 2016. While forward-rate agreements suggest there’s a small chance of an increase on Thursday, just three of…

Investec Money Manager Seen as Target After Split From Bank

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – After amassing 109 billion pounds ($143 billion) in assets within the belly of Investec Plc, Hendrik du Toit can now plot his own course as the money manager he founded splits from the banking group. For Investec Chief Executive Officer Stephen Koseff it is a bittersweet moment. He’s preparing to leave the company next month after 40 years of helping to grow a local Johannesburg financier of doctors and lawyers into a giant…

South Africa Reserve Bank Warns of Price Risks as It Holds Key Rate

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank warned of upside risks to inflation as it held the key interest rate at a two-year low. The Monetary Policy Committee unanimously decided to keep the repurchase rate at 6.5 percent Thursday. All 15 economists in a Bloomberg survey predicted the freeze. The rand had its worst month in more than two years in June as the U.S. and China exchanged tariff blows at a time when…

South Africa Central Bank Sees Limited Room for Further Easing

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JOHANNESBURG (Capital Markets in Africa) – South Africa has little room for further interest-rate cuts unless the inflation outlook improves, the central bank said. Monetary policy is still marginally accommodative and “the room for additional rate cuts remains limited in the absence of a more durable improvement” in the price-growth outlook, the central bank said in its annual report published on its website on Monday. The Monetary Policy Committee kept its key rate unchanged at 6.5 percent last…

Rand at a Crossroads as Key Levels to Determine Rally’s Future

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Some traders are wondering whether the rand’s 20 percent rally since November has gone too far. This week may settle that question. The South African currency has just completed a so-called “golden cross”, signalling an extension of the gains versus the dollar on the back of market-friendly swings in national politics. But it has come up against another hurdle, which it briefly cleared on Tuesday before falling back. Traders may…

Rand’s on a High as Commodities, Politics and Greenback Team Up

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JOHANNESBURG (Capital Markets in Africa) – The stars are aligned for South Africa’s rand as it enters the new year. Not only are investors backing the currency on prospects that market favourite Cyril Ramaphosa may soon become the country’s leader, but the ailing dollar and rising commodity prices are playing along. The rand touched its strongest level in more than two years on December 28 and remained near that level on Tuesday. The Bloomberg Commodity Index climbed to a…

South African Rand Surges as Traders Cheer Respite From Moody’s

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand is living up to its reputation as the world’s most volatile currency. Having been dealt what should have been a crippling blow by S&P Global Ratings on Friday, sparking a 2 percent slump, the currency advanced as much as 3.3 percent on Monday, on track for its best day since December 2015, after Moody’s Investors Service retained its investment-grade rating on the nation’s local-currency debt….

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