The Organisation for Economic Cooperation and Development on Tuesday released a key report on the economic status of South Africa.
Global analysts Lehman Brothers wondered out loud on Friday morning whether some notably hawkish statements by Reserve Bank Governor Tito Mboweni on Thursday might be a signal that a rate hike of 100 basis points could be on the cards come June 12.
South African stocks were mixed in early afternoon trade on Wednesday due to volatility, but the feature of the morning session was a strong gain by synthetic fuel producer Sasol. At 12.25pm, the JSE’s broader all-share index was up 0,09%, with the industrial index up 0,88%, but resources were down 0,38%.
One of the most decisive rates meetings yet of the South African Reserve Bank’s monetary policy committee (MPC) began on Wednesday morning with "no hitches", according to a bank spokesperson. The meeting will end after lunchtime on Thursday, with the final decision announced live to the public just after 3pm.
While emerging markets have been resilient so far to global market subprime turmoil, global spillovers could test their resilience, said the International Monetary Fund’s (IMF) director of monetary and capital markets, Jaime Caruana, on Tuesday at the launch of the IMF’s latest <i>Global Financial Stability Report</i>.
A senior bond-portfolio manager and an emerging-markets analyst from Lehman Brothers both uttered the same dreaded word soon after reading what Tito Mboweni had said in Parliament on Wednesday: hawkish. In fact, Lehman Brothers now predicts a 50-basis-point increase in the repo rate on April 10 to 11,5%.
The South African Reserve Bank quarterly bulletin data on Wednesday showed that household debt was at a new record 77,6% from 77,5% in the third quarter, but gross domestic expenditure dipped to just 0,2% in the fourth quarter from a revised 5,4% (5,75%) previously.
The rand and bond market in South Africa are at one that the indefinite delay in South Africa’s producer price index (PPI) is causing the country’s reputation harm on the global stage. Dealers and portfolio managers in the rand and bond markets on Monday said that the untimely delays were causing damage.
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/ 20 February 2008
Finance Minister Trevor Manuel has delivered what he terms a "can do" budget that aims to put the doomsayers and naysayers at rest by boosting infrastructure and people. Manuel noted that this was important or else the doomsayers and naysayers would simply "take control".
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/ 19 February 2008
Brait economist Colen Garrow says that while the government’s inflation-targeting and exchange-control policies are overdue to be fine-tuned, it is unlikely that any tangible announcement will be made on Wednesday in Finance Minister Trevor Manuel’s budget speech.