What it could mean for households Neil Roets, CEO of Debt Rescue said that
the Fed’s decision this week matters well beyond the US.
“I believe a 25-bps increase is now a real possibility. For South Africa, that
would add another layer of pressure ahead of the Reserve Bank’s decision
next week. We at Debt Rescue are concerned about what this combination
of global and domestic pressures means for SA households. Higher US
rates can support the dollar and place pressure on emerging-market
currencies such as the rand, while the Iran conflict and renewed oil-supply
concerns are keeping global energy prices elevated,” Roets said. He added
that both can feed into South Africa’s inflation outlook
through fuel, transport and broader input costs.
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