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Global central banks re-ignite a “risk-on” environment

12 April 2016

Concerns over the health of the global economy have deepened. Most major regions are now expected to expand at a slower pace this year relative to the growth rates observed in 2015. Recognition of the external risks to the United States (US) economy caused a more dovish rhetoric from the US Federal Reserve (Fed), triggering a slide in the US dollar, while the European Central Bank (ECB) and Bank of Japan (BoJ) eased monetary policy further in 1Q16 amid serial disappointment on growth and inflation prospects.

March market snapshot

08 April 2016

March delivered a mixed bag of economic data but global markets ended the month meaningfully higher.

A history of inflation in SA

06 April 2016

High inflation is detrimental to economic growth. It attracts investment to non-productive assets and discourages saving; consumers are more likely to buy immediately in an environment of rising prices. Without sufficient domestic saving, we need to rely on foreign investment to spur on development, eventually running into a balance-of-payments crisis.