Tag: David Crosoer
Targeting the lower inflation band – what does it mean?
The South African Reserve Bank (SARB) recently signalled its intention to target the lower band of the 3% to 6% inflation range. Previously, the Bank adopted the mid-point of 4.5% as its formal objective in 2019. This shift shows a deliberate effort to anchor investor expectations closer to 3%. It may also reshape long-term assumptions about South African inflation as SARB focuses on targeting the lower inflation band.
Making sense of investment cycles
Equity markets have been under considerable selling pressure in 2022, as investors anticipate that stubbornly high inflation will cause central banks to raise short-term interest rates multiple times this year. At the same time, expectations for global economic growth have been revised downwards, following further disruptions to global supply chains on the back of Russia’s invasion of Ukraine and China’s strict COVID-19 lockdown measures.
Global macro environment still broadly supportive for growth
Markets continued their rally into the fourth quarter of 2021, with South African (SA) equities delivering its strongest calendar year return since 2012 (up 27.1%) and global equities since 2015 (up 28.8% in Rands).
