SIMON BROWN: I’m chatting with Rhandzo Mukansi, head of interest rate process at Futuregowth Asset Management. Rhandzo, I appreciate the time. We’ve got central bankers’ galore, with our own MPC on Thursday. Next week is the ECB. And 11/12. June is the Federal Reserve and then the week after that, 20 June, is Bank of England, and even the Swiss National Bank.
So while its inflation directionally is heading towards that target, for as long as it’s above 4.5%, for as long as global central banks – specifically the US Federal Reserve Bank, the ECB to some extent – remain hawkish, I think we definitely won’t have cuts from the domestic central bank. SIMON BROWN: Moving offshore, the ECB next week on the 6th of June, which is Thursday. There was a lot of talk at their last meeting that they would potentially start cutting at this June meeting. Do you think that’s likely, particularly ahead of the FOMC, the Federal Open Market Committee?
SIMON BROWN: That’s another point, perhaps, which is if we go back to the beginning of this year when there were some people expecting cuts in January from their FOMC, when we do start getting the cuts they are probably also going to perhaps be slower. So we think central banks want to cut, but there’s risk of course to inflation being sticky, and then not cutting as quickly and as much as they otherwise might have.
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