RAND RISK | South African Rand Still Overvalued Why the SA Rand - TopicsExpress



          

RAND RISK | South African Rand Still Overvalued Why the SA Rand is Forecast Lower in 2015: MONETARY POLICY: The SARB continues to face contradictory policy choices. On the one hand, growth is very weak and clearly requires accommodative monetary policy, while inflation is stubbornly high and above the inflation target of 3-6%. However, the growth worries currently seem to outweigh somewhat higher inflation. DEBT: A budget deficit of 4.0% of GDP is projected for 2013/14 RISKS: Deepening of the socioeconomic and structural problems, further downgrade by the rating agencies, and a widening current account deficit. VALUATION: ZAR remains fundamentally overvalued (fair value around 12.50). poundsterlinglive/zar/1692-south-african-rand-forecast-2015-454354
Posted on: Tue, 04 Nov 2014 09:40:37 +0000

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