Macroeconomic indicators, JSE Financial 15 Index and sustainable development channels
| Variable | Transmission to JSE financial 15 index | Relevant SDG | Sustainable development relevance |
|---|---|---|---|
| Inflation | High inflation can reduce real returns, increase uncertainty, raise operating costs and weaken investor confidence in financial-sector equities | SDG 8 | Price stability supports investment, savings, credit affordability and sustainable growth (FSDO, 2024; Sayed, 2015; Frey, 2018) |
| Interest rate | Repo-rate changes affect bank lending rates, credit demand, loan performance, discount rates and financial-sector valuations | SDG 8; SDG 16 | Predictable monetary policy strengthens financial stability, investor confidence and institutional credibility (Sayed, 2015; World Bank Group, 2013, 2016) |
| Exchange rate | Rand depreciation or appreciation affects foreign capital flows, imported inflation, external liabilities and investor sentiment | SDG 8; SDG 9 | Exchange-rate stability supports investment planning, trade financing and capital-market resilience (FSDO, 2024; Sayed, 2015; UNCTAD, 2017) |
| Real GDP | Economic growth affects credit demand, household income, corporate earnings and financial-sector profitability | SDG 8 | Stronger growth improves financial-sector performance and supports employment and productive investment (Sayed, 2015; World Bank Group, 2013, 2016) |
| JSE Financial 15 Index | Reflects the performance of leading banking, insurance and financial services firms | SDG 8; SDG 9; SDG 16 | A stable financial-sector index signals stronger intermediation, capital mobilisation, infrastructure financing and macro financial confidence (FSDO, 2024; Sayed, 2015; World Bank Group, 2013, 2016) |
| Variable | Transmission to JSE financial 15 index | Relevant SDG | Sustainable development relevance |
|---|---|---|---|
| Inflation | High inflation can reduce real returns, increase uncertainty, raise operating costs and weaken investor confidence in financial-sector equities | SDG 8 | Price stability supports investment, savings, credit affordability and sustainable growth ( |
| Interest rate | Repo-rate changes affect bank lending rates, credit demand, loan performance, discount rates and financial-sector valuations | SDG 8; SDG 16 | Predictable monetary policy strengthens financial stability, investor confidence and institutional credibility ( |
| Exchange rate | Rand depreciation or appreciation affects foreign capital flows, imported inflation, external liabilities and investor sentiment | SDG 8; SDG 9 | Exchange-rate stability supports investment planning, trade financing and capital-market resilience ( |
| Real GDP | Economic growth affects credit demand, household income, corporate earnings and financial-sector profitability | SDG 8 | Stronger growth improves financial-sector performance and supports employment and productive investment ( |
| JSE Financial 15 Index | Reflects the performance of leading banking, insurance and financial services firms | SDG 8; SDG 9; SDG 16 | A stable financial-sector index signals stronger intermediation, capital mobilisation, infrastructure financing and macro financial confidence ( |
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