The renewed reduction in that “term premium” in major fixed-income markets in 2014, as policy guidance by the Federal Reserve seemed to reduce investors’ uncertainties as to the future path of US rates, probably was a key factor towards the renewed decline in South African  4  BIS central bankers’ speeches  yields and the relative stabilisation in the rand since the end of January up until August 1.
Certainly, in terms of communication, central banks have progressed somewhat over the past couple of years, and particularly since the taper tantrum, the associated volatility in financial markets related to monetary policy communication, has also declined. The big question remains, however, how sustainable is the recovery that we are currently experiencing?