South African review charts motivations behind resumption of tightening cycle
One of three chief considerations was the path of exchange rate and the risks it posed to inflation
The resumption of the South African Reserve Bank's (Sarb's) hiking cycle in July was prompted by three considerations, including the deterioration in the path of the exchange rate, according to the Sarb's latest monetary policy review.
The review, published November 30, recaps the motivations of the Sarb in tightening policy earlier this year, noting the trade-weighted exchange rate appeared "quite stable" at first. The currency continued to fall against the dollar, but "held up well against
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