Macroeconomic Forecast South AfricaDecember 2010 | Macroeconomic Forecasts
BMI View: Monetary policy will remain abnormally loose in the US, with the Federal Open Market Committee planning to purchase an additional US$600bn of longer-term Treasury securities by the end of Q211. The associated 'wall of liquidity' will likely flow towards high-yielding emerging markets with strong growth trajectories. South Africa will be the main beneficiary in SSA, thanks to the carry on offer - with the repo rate likely to remain at 5.50% through 2011 - as well as the relatively deep and liquid financial markets.
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