Bank governor disputes rates expectations

Expectations of an interest rate hike of up to 200 basis points this year were exaggerated, Reserve Bank governor Gill Marcus said yesterday. South Africa’s short-term interest rate markets are currently pricing in a rise of that size. Marcus also said that achieving real positive interest rates was not something the Reserve Bank would like to do, given weak domestic growth, and that future rate decisions would depend on data. Marcus said the Reserve Bank had not taken last week’s decision to increase rates by 50 basis points lightly. – Bloomberg page 14

Yellen sworn in as leader of US Fed

Janet Yellen has been sworn in to succeed Ben Bernanke, becoming the first woman to lead the US Federal Reserve in its 100-year history. Yellen made no remarks at her swearing in but did smile to acknowledge the applause. Nominated by President Barack Obama on October 9, her four-year term as chairwoman will end on February 3, 2018. – Sapa-AP