Neil Roets, CEO of Debt Rescue said that while the Sarb does not
automatically follow the Fed’s decisions, it still is significant for South Africa
because it changes the external conditions that the central bank must
consider ahead of its own interest-rate decision that will be announced
later this week on Wednesday.
“We at Debt Rescue are particularly concerned about how these
international and domestic pressures could ultimately translate into higher
borrowing costs for already stretched South African households. Higher US
interest rates can place pressure on emerging-market currencies such as
the rand and increase the risk of imported inflation. This becomes
particularly important when South Africa is already facing renewed fuel-
price pressure,” Roets said.
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