The South African Reserve Bank (SARB) has cut the repo rate by 50 basis points, from 7.5% to 7%. This has resulted in an increase in the PowerStocks Monetary Policy Indicator (MPI) Timing Model signal as shown below:
As you can see, the point gained by the MPI Timing Signal as a result of today’s rate cut merely negated a MPI point expiration that occurred on 10 August 2009 (for the 10th February 2009 rate cut). If you recall, our Monetary Policy Timing model allocates points when rate cuts ...
Continue reading ...