Frail Factories, Weak Rand Complicate South Africa MPC Decision

  • Rand has weakened 15% this year as commodity prices plunged
  • Forward-rate agreements show more than 70% chance of rate rise

A manufacturing industry in recession in South Africa, a country choked by a power crisis and weak global demand, should make the case for an interest-rate cut. With the currency near a record low and the threat of further capital outflows, the decision is more likely to go the other way.

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