The South African Reserve Bank is expected to forge ahead with its monetary tightening at Thursday’s policy meeting, say global analysts Moody’s Economy.com. The analysts highlight that August credit and sales figures have helped to underpin opinion that the Reserve Bank will raise interest rates by another 50 basis points.
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/ 28 September 2007
The Governor of the South African Reserve Bank, Tito Mboweni, said on Friday that while credit problems in the United States have given the global imbalance issue some impetus, South Africa also has its own imbalance with the current-account deficit at about 6% of GDP.
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/ 6 September 2007
South African Reserve Bank Governor Tito Mboweni said on Thursday that while there were some tentative indications of a slowdown in consumption, such as vehicle sales, it was still "early days". Mboweni said that while the current account deficit was being adequately financed by financial inflows, there might be inflationary pressures in the future if the deficit widened.
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/ 3 September 2007
Given the outlook for continued strong investment over the next few years, it appears that South Africa’s trade balance is sustainable going forward at about current levels, said global analysts Lehman Brothers on Monday. However, they do expect the current high trade imports to affect the current-account deficit.
While core inflation moderated a tad in July, indicating a slight softening in broader-based inflation, headline numbers remain the key bugbears driving CPIX (consumer inflation less mortgage costs) to its highest level in close to four years and sealing the fate for another increase in interest rates in October.
The 2007 Southern African Development Community (SADC) <i>Business Climate Survey</i> has put crime, theft and corruption on top of the list of stifling blocks to more regional trade and investment, reported the Association of SADC Chambers of Commerce and Industry on Friday.
Governor of the South African Reserve Bank Tito Mboweni said on Wednesday evening that South Africa is facing a critical shortage of specialist skills in a number of fields, most especially in the important financial and economic field. However, he added it is pleasing to see some institutions were getting involved to help develop the skills base.
The issue of savings in South Africa was not just an economic question, but also a matter of changing attitudes, said director general of the National Treasury, Lesetja Kganyago, on Tuesday. "We must ask as South Africans why are we consuming more than we are earning?"
The South African Chamber of Business (Sacob) said on Monday it aims to build a truly non-racial, viable movement and that its aim of unity was achievable. The chamber was announcing the appointment of Dr Kwandiwe Kondlo as general manager. It has been without a CEO or general manager for about 18 months.
After reaching its highest level since August 2003 of 6% year-on-year, core inflation in South Africa dropped to 5,7% in June, but analysts said on Wednesday this does not change underlying concerns, and interest rates are still likely to rise. Core inflation excludes volatile changes in food prices, municipal rates and monetary policy.