The paper estimates a slew of augmented Taylor rule specifications using call and treasury bill rates. After accounting for break points, we calculate the output gap based on a single-index dynamic factor extracted from monthly high-frequency indicators that are representative of broad sectoral activity. In our study, we found that interest rates in India are mostly in line
South Africa entered a rising interest rate cycle for the first time in three years when the SA Reserve Bank’s Monetary Policy Committee (MPC) raised the repo rate by 25 basis points (bps) at each of its previous three meetings. The impact this will have on corporate credit in the years ahead.