Gordhan’s Duel With Police Stirs South Africa Rate-Rise Case
- Inflation expectations surges as the rand fell against dollar
- Mminele sees too many risks to say increase cycle is over
The Implications If Gordhan Is Removed From Office
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A stand-off between South African Finance Minister Pravin Gordhan and the country’s police force has caused the rand and bonds to plunge. The next victim could be the nation’s consumers.
As recently as a week ago, traders bet that rates will stay unchanged in the next year and a half as the rand strengthened and inflation slowed toward the central bank’s target. By Friday, the market was pricing in more than 40 basis points over the next 18 months as concern that Gordhan’s job is on the line sent the currency tumbling.