South Africa’s central bank said it’s focusing on the core inflation rate to assess whether the effect of a weaker rand is feeding through to prices in the economy.
South African bonds advanced after third-quarter economic growth fell short of economists’ estimates, fueling speculation borrowing costs will be kept at a four-decade low. The rand strengthened.
The euro rose to the highest in more than four years versus the yen after a German report showed Europe’s economic recovery may be gaining momentum, easing speculation the central bank will cut interest rates further.
The rand swung between gains and losses, headed for its second weekly advance, after South Africa’s central bank indicated it may raise borrowing costs as a weaker currency fuels inflation.
South Africa’s Reserve Bank kept its benchmark interest rate unchanged, while indicating it may move borrowing costs higher as a weaker rand threatens to fuel inflation.
The South African Reserve Bank is running out of options to stimulate a sluggish economy as a weaker rand this year keeps pressure on inflation.
Janet Yellen, nominated by President Barack Obama to succeed Ben S. Bernanke as chairman of the Federal Reserve, is poised to become the most economically powerful woman in the world.
Gill Marcus chose a speech to a labor union that wants to nationalize the South African central bank she heads to defend its independence and inflation- targeting policy.
South African central bank Governor Gill Marcus made the following comments to reporters in Cape Town on the nomination of Janet Yellen as the head of the U.S. Federal Reserve.
South Africa needs to boost foreign- currency reserves to shield the economy against the risk of capital outflows, central bank Governor Gill Marcus said.
"I have known Janet for some years."
- Gill Marcus on Sep 22, 2013