November’s government revenue and expenditure figures suggest that the National Treasury is still on track to meet the budgeted surplus for the current fiscal year, with only the last quarter remaining, according to independent analysts. The Treasury recorded a fiscal deficit for November of R4,6-billion.
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/ 7 December 2007
South African taxpayers should brace themselves for scant relief when the Budget is announced in February next year as analysts feel Finance Minister Trevor Manuel is likely to be very cautious due to the cyclical risks underpinning the economy. Analysts also feel that the Budget needs to be better harnessed to improve effective expenditure.
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/ 6 December 2007
South African markets were expecting slightly more hawkish rhetoric by the South African Reserve Bank than transpired on Thursday and now feel inflation is fairly close to its peak. The bond market, especially at the previously sold-off short end, has reacted favourably.
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/ 30 November 2007
South African Reserve Bank Governor Tito Mboweni said on Thursday evening that inflation-targeting would be here "for many years" and economic policy is not going to change in South Africa as the foundations built up by President Thabo Mbeki, himself and Finance Minister Trevor Manuel were too strong to be weakened.
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/ 13 November 2007
If the South African Reserve Bank is consistent, then inflation matters have deteriorated since October and another rate hike can be expected in December, according to Dr Azar Jammine, director and chief economist of Econometrix. However, Jammine on Monday also criticised some of the thinking in this regard.
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/ 12 November 2007
There is potential for the rand to tend to be weaker due to the current-account deficit, but more than anything the currency’s fortunes will depend on the strength of the global economy, according to Dr Azar Jammine, director and chief economist of Econometrix.
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/ 9 November 2007
High interest rates in South Africa may continue supporting the rand in the coming months as investors continue to be attracted by the growing yield differential between United States treasuries and their rand-denominated equivalents, says global analyst firm Moody’s Economy.com.
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/ 6 November 2007
The South African Reserve Bank said on Tuesday in its latest <i>Monetary Policy Review</i> that the breach of the 3%-to-6% inflation target is of "significant concern" to the monetary policy committee. The bank added that some of the key inflation risks have proved "persistent" since the previous review was published in May.
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/ 6 November 2007
The South African Reserve Bank (SARB) said on Tuesday in its latest <i>Monetary Policy Review</i> that in light of the risks around the subprime crisis in global markets, it is important to maintain a stable and transparent monetary policy regime. Authorities in some emerging markets have been advised to strengthen surveillance.
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/ 2 November 2007
Finance Minister Trevor Manuel said on Friday at a <i>Financial Mail</i> medium-term budget briefing that the world had changed in the past 12 years and developing countries needed to become more involved in the world trade regime or else they would just be following the procession.