Reserve Bank doesn t see disruption from global policy normalisation 16 April 2021 - 07:44 By Mfuneko Toyana and Alexander Winning Reserve Bank governor Lesetja Kganyago at the Reserve Bank head offices in Pretoria. File image Image: Freddy Mavunda
South African financial markets are unlikely to be severely disrupted as global central banks normalise policy, and a balanced inflation outlook means domestic interest rates can stay low, governor Lesetja Kganyago said.
Kganyago said in an interview on Thursday that even if capital outflows did materialise as other central banks taper asset purchases or raise rates, the SA Reserve Bank s focus was on inflation.
“Our inflation is contained. Monetary policy will not come with a stance that tries to stem capital outflows. That s not our reaction function . For as long as inflation on a forward-looking basis is contained, there is no need to adjust policy,” he said.
MUMBAI: The rupee strengthened by 58 paise to end at 74.35 (provisional) against the US dollar on Friday, supported by positive domestic equities amid improving risk appetite. At the interbank forex market, the local unit opened at 74.76 against the greenback and witnessed an intra-day high of 74.28 and a low of 74.76. It finally ended at 74.35 against the American currency, registering a rise of 58 paise over its previous closing. On Thursday, the rupee had settled at 74.93 against the American currency. Indian Rupee gained strength amid weakness in dollar and rise in risk appetite in the domestic markets, said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
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FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo
(Reuters) -The U.S. economy is set to take off as more Americans are vaccinated, the virus gets under control and consumers become more comfortable engaging in economic activity, Federal Reserve Governor Christopher Waller said on Friday.
“I think the economy is ready to rip,” Waller said during an interview with CNBC. Waller said he expects the U.S. economy to grow by 6.5% this year, for inflation to rise by about 2.5% and for the unemployment rate to drop to about 5% by year end.
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NEW YORK (Reuters) - Excess cash in the financial system has pressured overnight interest rates, in some instances pushing them negative, which, analysts said, could prompt the Federal Reserve to lift the short-term rates it manages.
FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque/File Photo
The overnight repurchase rate, which measures the cost of borrowing short-term cash using Treasuries or other debt securities as collateral, dropped to as low as -0.06% in late March and hit that level again on Wednesday, before stabilizing at around 0.01% on Friday.
By Reuters Staff
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April 16 (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan said Friday that while the U.S. central bank has no independent role in addressing climate change, it does need to understand it because of its “significant” effect on the economy.
Climate change and efforts to address it pose risks to the fossil fuel industry as the economy transitions to alternative energy sources, Kaplan said at the City of Dallas Climate Change Symposium, and severe weather events can disrupt and potentially destabilize the financial system. “We want to make sure that the financial system that we oversee. is resilient to these risks,” he said. (Reporting by Ann Saphir)