THURSDAY, 11.00AM
RESERVE Bank governor Dr Chris Stals on Wednesday once again dashed hopes of an early interest rate cut, when he said there will be no rate as long as money supply and credit growth remain high.
Acknowledging that since SA’s return to global markets, interpretation of credit and money supply figures had changed, “but that does not mean we have to discard it just because we do not like the message.
Stals said the Bank is taking a wide view, taking into account other measures of money supplky such as M2 and total bank credit extension. Both the M2 and M3 had risen over the first quarter, as had total bank credit extension. Stals added that inflation, another key indicator for monetary policy, had also been on an upward trend until April, while the rand depreciated a further 3% over the past three months. “In short, there are still too many signs of inflationary pressures … to allow an easing of monetary policy by creating more money.”
BUSINESS BRIEFS
TELKOM’S R775m THEFT LOSS PARASTATAL telecoms corporation Telkom lost at least R775-million to theft and fraud in the 1996/97 financial year, Telecommunications Minister Jay Naidoo told Parliament on Wednesday. Naidoo added that R40-million was lost to copper cable theft, an 80% increase over the previous year.
YANKEE BONDS RATED B+ SOUTH Africa’s palnned $250-million Yankee bond issue has been assigned a B Plus credit rating by Standard & Poor’s. The American rating agency cited a positive outlook due to government’s commitment to fiscal and monetary discipline, relatively low inflation and manageable debt.
TAX HOLIDAY SUCCESS The tax holiday scheme to attract new investment in SA has attracted applications worth R627-million which will create 1 432 new jobs, Deputy President Thabo Mbeki said on Wednesday.