Fixed Income Chart Book: 2 September 2015

The South African Reserve Bank (SARB) could raise interest rates to protect the rand

The rand lost almost 8% against the dollar since the last Monetary Policy Committee (MPC) meeting. There is therefore a good chance that the SARB could raise rates in September despite negative GDP growth. The rand is vulnerable to external shocks so one such way to intervene is through rate hikes instead of foreign exchange intervention.