JOHANNESBURG - As the global economy navigates rising uncertainty, central banks are once again taking centre stage.
The US Federal Reserve is widely expected to cut interest rates at its upcoming meeting, potentially shifting global capital flows.
Meanwhile, the South African Reserve Bank looks set to hold firm, with no rate cuts in sight.
This growing policy gap between the Fed and the SARB could have big implications for emerging markets, and especially the rand.
Could this divergence finally give the rand a real lift? Or are there risks the market isn’t fully pricing in yet?
Johann Els, Chief Economist at Old Mutual Group, said that if the inflation target had been in the middle of the target range, there would have been significant room for a rate cut.