Money-market rates have been moving higher since the second quarter of 2013, with the 12m JIBAR rising from 5.5% to 8.65% by March 2016. This rise was considerably steeper than the 200 basis points increase in the repo rate over this period. The upward movement in money market rates was mainly attributable to a deterioration in inflation expectations which was exacerbated by the steep decline in the exchange rate of the rand.
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