Sarb forecasts further impact from Fed taper

South African Reserve Bank releases semi-annual financial stability review

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South Africa remains "vulnerable" to the Federal Reserve's monetary policy decisions and the uncertainty surrounding them, according to the South African Reserve Bank's (Sarb) latest financial stability review, published yesterday.

The Fed's decision to taper its asset purchases "continued to impact on the pattern of global capital flows" in the past six months. "Actions towards policy normalisation by the US Fed have impacted negatively on financial stability in EMEs, including South Africa

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