In line with expectations the Reserve Bank opted to maintain the repo rate at 7%. The decision came despite an upward revision to the Bank’s inflation forecast – the SARB now expects the inflation rate to average 6.2% relative to the 5.8% pencilled down at the end of last year. Furthermore, inflation is expected to […]
Consumer confidence index not as bad as the ’80s, but it’s not far off Following an improvement in the third quarter, the FNB / BER consumer confidence index slipped to negative 10 in the final quarter of last year. The third quarter surge was largely attributed to growing optimism about the future of the economy […]
September Retail Trade sales bounced back to 1.4% y/y after registering no growth in August. The month-on-month rate also recovered 0.6% but growth for the quarter contracted by -0.2% q/q. Despite the improvement on August, general dealers (which make up almost half of all sales) contracted by -0.3% y/y. Similarly, clothing and footwear retailers fell […]
Yesterday’s Budget Review contained ambitious fiscal consolidation targets. Its tone also suggested a strong commitment to growth enhancing structural reforms. While it is a step in the right direction and has probably bought South Africa some time, the odds of a downgrade by at least one rating agency in December 2016 remain high. Changes to […]
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