CD South Africa: Dovish Fed vs Hawkish SARB?

The US Federal Reserve kept interest rates unchanged last night, highlighting poor global growth and financial conditions as a concern. It was no real surprise, even though the Fed sounded fairly upbeat on the US economy.

Today, however, is all about the South African Reserve Bank as it announces its interest rates at 15h00. Expectations are mixed as markets are split between a 25 or 50 basis point rise, with the latter more likely to aid the rand (at the expense of consumers). On the data calendar we also have UK GDP (11h30), US durable goods (15h30) and US pending home sales (17h00).

Commentary by Justin Lodewyk