The South African Reserve Bank is unlikely to cut interest rates next month, because of inflationary pressures that lie ahead
The South African Reserve Bank has warned of an upside risk to the inflation outlook
This was despite the central bank highlighting upside risks to the inflation outlook
A third consecutive interest rate cut will help stimulate the economy, but the central bank will also be cautious about inflation pressures
The country’s ports and rail systems are shambolic, but GNU and a pause in load-shedding have elicited some optimism
Consumers should spend cautiously, despite the positive outlook for the year
Prices have increased by over 30%, favouring gold-producing countries like South Africa, but structural issues are dampening opportunities
This comes as inflation eased to 4.4% in August, below the midpoint of the Reserve Bank’s 3-6% target band
Consumers are spending more than 40% of their disposable income on repaying debt, survey shows
Statistics South Africa data released on Wednesday showed that the CPI annual rate was 5.1% in June compared with 5.2% in May
Governor Lesetja Kganyago said the central bank would wait for the inflation rate to fall within its 3% to 6% target before it makes a cut
Still-sticky inflation could further delay long-awaited interest rate cuts
Delivering the unanimous decision, central bank governor Lesetja Kganyago cited a still uncertain global outlook
Movements in headline inflation are a key indicator, but decisions are also influenced by central banks around the world, especially the US Federal Reserve
Some strategies for financial resilience
The uncertainty created by the possibility of a coalition government
is putting people off big-price buys
The US Federal Reserve’s ‘higher for longer’ stance and local election jitters have weighed on the rand, adding to price pressures
The unbundling of the company will help parent, Transaction Capital, pay some of its debts
Faan van der Walt says the used-car seller has a winning formula and can withstand future economic challenges
Inflation is now expected to return to the Reserve Bank’s midpoint target at the end of 2025, later than previously forecast
Shored up by higher borrowing costs, South Africa’s banking sector seems to have to weather the 2023 economic storm
The transport and mining industries were the key contributors to fourth quarter GDP growth
According to economists, the country’s fourth-quarter GDP numbers will have been buoyed by a winding down of power outages
The International Monetary Fund has slashed South Africa’s 2024 growth forecast as the country’s economy grapples with logistics constraints
After the release of the December inflation data, Investec chief economist Annabel Bishop said the Reserve Bank is likely to remain hawkish amid upside risks
Risk is not something to be shunned, but rather to be respected and, where possible, softened
This year will finally see interest rates fall. But whatever relief the Reserve Bank administers, it will have come too late for some
Last year was dismal on a number of fronts. And although things probably won’t get exponentially better, there is some hope on the horizon
The GDP decline comes despite an improvement in energy generation during the quarter, suggesting logistical constraints and interest rates are choking the economy
Despite ongoing volatility, the monetary policy committee revised its 2023 headline inflation forecast down slightly
However, inflation will probably remain elevated into next year
As the world changes, so are the trends that influence your investment decisions, but long-term planning remains key