The US Federal Reserve has raised interest rates by 25 basis points, taking its target range to 3.75%–4%. Gareth Edwards and Francis Herd unpack why the decision matters far beyond the United States, including the immediate reaction in the rand and the forces that can pull investment towards the dollar.
Attention now turns to the South African Reserve Bank, which announces its next interest-rate decision on 23 September. The US move does not determine what the SARB will do, but it adds another global factor to a decision already balancing inflation, growth, currency movements and borrowing costs.
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Chapter List
(00:00) 25 Basis Points: Why The US Rate Hike Matters
(01:19) Why The Rand Reacted To The Fed Decision
(04:42) What The US Rate Hike Could Mean For SA Rates
