Evan Pickworth
Guest Author
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/ 1 November 2006

Retail sales moderation good news for rates

After the more moderate 8,7% increase in retail sales in August from the revised 9,6% in July, any further cooling in retail sales growth in September will be good news on the interest rate front, say analysts. Nedbank researchers Dennis Dykes and Magan Mistry say that growth in retail sales is expected to ease off a high base as consumers begin to react to rising interest rates.

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/ 31 October 2006

Govt underspending remains a concern

South Africa recorded another huge budget surplus in September of R14,8-billion and the government is therefore well on track to meet its revenue targets, with revenue collected halfway through the fiscal year at 50,1% of the budgeted target. However, a more pressing concern lies on the expenditure side.

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/ 30 October 2006

No meaningful reduction in personal tax expected

While no meaningful reduction in personal income tax should be expected in the February 2007 main budget, the focus could be on the corporate tax regime instead, says Sanlam group economist, Jac Laubscher. "While government seems favourably disposed to lowering tax rates, it is keeping its options open as far as lowering taxes in the main budget in February 2007 is concerned," says Laubscher.

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/ 27 October 2006

High rates: It’s not all bad news

With interest rates on the rise in South Africa, and further hikes expected before the end of February 2007, analysts say that this will affect the financial health of firms and individuals at the margin, but will also place a check on irresponsible debt accumulation and inefficient operations.

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/ 25 October 2006

Narrowing of current-account deficit expected

A narrowing in the current-account deficit is expected over the remainder of 2006 as oil prices and import volumes ease and as exports pick up, the Treasury said in its Medium-Term Budget Policy Statement on Wednesday. The Treasury said that a deficit of 5,7% of GDP was expected in the current year, with the deficit projected to average 5,6% over the medium term.

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/ 13 October 2006

Anglo, Billiton give JSE a lift

It was a tussle between resources and industrials in late morning trade on the JSE Friday, with resource counters winning the battle for now as heavyweights Anglo and BHP Billiton held sway. By 12.10pm on Friday, the all share index was up 0,63% with resources up a healthy 0,86% and banks gaining 1,50%.