US rate hike hasn’t derailed the Rand
20 June 2017
The US Federal Reserve (the Fed, as it is commonly known) increased its target interest rate last week as expected by 0.25%. The fourth increase since the start of the historically gradual hiking cycle in December 2015, it takes the fed funds rate target range to a range of 1% - 1.25%. (We pay close attention to US markets and interest rates since they set the tone for global markets and by implication, South African markets.) The Fed also spelled out plans to reduce its $4.5 trillion balance sheet, which ballooned after three rounds of quantitative easing between 2008 and 2014.