Author: Prowess Investment Team

Taku Makotore, Prowess Fixed Income Analyst, on the Prowess money market strategy, his time with the business, and the power of collaboration…

Last week US CPI data prints affirmed a sticky inflationary environment, with no sign of interest rates cut on the horizon. While locally, markets await the local CPI print ahead of the MPC’s interest rates announcement at the end of May…

Last week, the Bank of England kept the bank rate on hold at 5.25% but their tone was dovish, leading investors to believe a cut might be on the cards in their June meeting, whilst the Rand has remained constrained due to a risk-averse sentiment tied to the delay in US interest rate cuts…

The US Fed’s FOMC meeting is in the spotlight this week, with the Committee expected to keep interest rates unchanged given the latest CPI and core PCE data indicate that price pressure continues to be sticky.
Locally, the SARB expects the near- and medium-term outlook for GDP growth in South Africa to improve…

Last week, US inflation data suggested that inflation is a lot stickier than anticipated, reducing the likelihood of interest rates cuts in the near term. Fears of the tension between Israel and Iran escalating in the Middle East persist. Locally, CPI inflation for March eased following two months of up-swings, but upside risks to the inflation outlook remain…

Geopolitical risk headlines the week, as the conflict in the Middle East risks spreading into a regional war following Iran’s missile attack on Israel. Meanwhile, the IMF warned that global central banks should be wary of leaving interest rates high for too long given the impact on households…

Inflation data releases for the US and the Eurozone headline the week ahead amid concerns about the slower than expected pace of disinflation. Locally, inflation pressures are also on the rise as drought weather poses risk to the food inflation risk outlook and increased oil prices are likely to put pressure on fuel prices…

In an unsurprising move, last week’s MPC message from the SARB was that interest rates would remain higher for longer as inflation expectations remained elevated. This move was echoed internationally by the Fed as it again signalled to markets that it is in no hurry to cut rates…

Last week saw central bank decisions affecting the cost of borrowing for 6 of the 10 most traded currencies, highlighting divergence in the perception of inflation risk. This week our local Monetary Policy Committee (MPC) meets, with the expectation that the repo rate will remain unchanged as recent inflation prints have surprised to the upside…

Last week investors kept a close eye on US inflation numbers for clues on interest rate cuts. Locally, President Cyril Ramaphosa reappointed SARB Governor Kganyago for another five-year term & announced Mampho Modise as the new Deputy Governor…