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reserve bank

SARB could step in to stem rand’s fall

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The South African Reserve Bank (Sarb) said late on Monday it may consider becoming involved in foreign exchange markets to ensure orderly price action. The bank said it had maintained over many years its position of not intervening in the foreign exchange market. "This position, however, does not suggest that the Sarb is completely indifferent to exchange rate movements," it said in a statement. It said threats to the "orderly functioning of markets or (developments) that may have … [Read more...] about SARB could step in to stem rand’s fall

No change to repo rate

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The Reserve Bank has kept the repo rate unchanged at 5.75% per annum. "The MPC has unanimously decided to keep the repurchase rate unchanged for now," Reserve Bank Governor Lesetja Kganyago said on Thursday. The repo rate has remained unchanged since a 25 basis points rate hike in July 2014. According to the Bank's latest forecasts, inflation is now expected to average 4.8% in 2015, compared with the previous forecast of 3.8%. A first quarter average of 4.2 percent is now projected … [Read more...] about No change to repo rate

Repo Rate unchanged

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The repo rate is to remain unchanged at 5.75%, Reserve Bank Governor Lesetja Kganyago said on Thursday. The decision follows the first three-day meeting of the year by the Monetary Policy Committee (MPC). "The MPC has unanimously decided to keep the repurchase rate unchanged at 5.75% per annum," Kganyago said. According to the bank, food prices remain a major source of inflation pressure. However, the moderation observed in recent months is expected to continue. The rand exchange … [Read more...] about Repo Rate unchanged

SARB disputes downgrade of Capitec Bank

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The South African Reserve Bank (SARB) says while it has taken note of rating agency Moody's decision to downgrade Capitec Bank Limited, it does not agree with the decision. Two reasons were given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec's consumer lending focus. "The SARB notes the decision by Moody's Investors … [Read more...] about SARB disputes downgrade of Capitec Bank

Marcus warns of tough economic times ahead

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South African Reserve Bank Governor Gill Marcus says emerging markets will be faced with a difficult year ahead due to global economic contractions. South Africa falls under emerging economies and has, due to domestic issues related to labour unrests, seen its growth slow down to 0.6% in the first quarter of 2014. Releasing the Reserve Bank's annual report for 2013/ 14 on Wednesday, Marcus said in her foreword that while the bank did not have the mandate or policy levers to address some of … [Read more...] about Marcus warns of tough economic times ahead

Recession unlikely in second quarter: Reserve Bank

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The South African economy is unlikely to fall into a recession in the upcoming second quarter, the Reserve Bank said on Tuesday. In its June Monetary Policy Review (MPR) document, the central bank said that the domestic economy has suffered several adverse supply shocks particularly from strike action as well as electricity shortages which led to negative first quarter growth. Last week, Gross Domestic Product (GDP) data released by Statistics South Africa showed that seasonally adjusted … [Read more...] about Recession unlikely in second quarter: Reserve Bank

Homeowners can breathe easy after MPC announcement

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Consumers are able to enjoy the current interest rate for a while longer, as Reserve Bank Governor, Gill Marcus, announced today at the third Monetary Policy Committee meeting of the year that the prime interest rate would remain at its current 9%. The repurchase rate will remain at 5.5%. While this will come as a relief to consumers, economists are still expecting the rate to be hiked throughout the remainder of 2014, says Adrian Goslett, CEO of RE/MAX of Southern Africa. “Unfortunately with … [Read more...] about Homeowners can breathe easy after MPC announcement

CPI breaches inflation target

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The Consumer Price Index (CPI) in April rose to 6.1% - breaching the Reserve Bank's inflation target range. "Headline CPI annual inflation rate in April 2014 was 6.1%. This rate was 0.1 of a percentage point higher than the corresponding annual rate of 6% in March 2014," Statistics South Africa (Stats SA) said on Wednesday. According to Stats SA, prices rose by 0.5 % on average between March and April 2014. The food and non-alcoholic beverages index rose by 1.3% between March and April, … [Read more...] about CPI breaches inflation target

Reserve Bank unlikely to intervene to stabilise rand

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While the rand is expected to remain volatile, the Reserve Bank is unlikely to intervene in the market to try to stabilise the currency, says Governor Gill Marcus. Speaking at the European Economic and Financial Centre in London on Tuesday, the governor said the currency has followed a volatile trend and that this trend is expected to continue. "While the exchange rate has been an important shock absorber for the South African economy, some concern has been expressed regarding its … [Read more...] about Reserve Bank unlikely to intervene to stabilise rand

Household spending contracts in fourth quarter

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South Africa's spending growth contracted 3.6% in the fourth quarter of 2013, the Reserve Bank said today. "Aggregate real gross domestic expenditure declined further from an annualised rate of 0.8% in the third quarter of 2013, to 3.6% in the fourth quarter," said the central bank in its Quarterly Bulletin. Rising inflation and tighter lending conditions, among others, were given as reasons for the slower pace of real final consumption expenditure by households in the fourth quarter of … [Read more...] about Household spending contracts in fourth quarter

Repo rate increases to 5.5%

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The Reserve Bank has hiked up the repo rate to 5.5%. "The MPC [Monetary Policy Committee] has decided to increase the repurchase rate by 50 basis points to 5.5 % per annum as of 30 January 2014,"  Reserve Bank Governor Gill Marcus said following the first MPC meeting of the year. The repo rate - which is the scale at which the bank lends money to commercial banks - has up until today been unchanged at 5% since July 2012. Market expectation was for the repo rate to remain … [Read more...] about Repo rate increases to 5.5%

SA spending in slows in third quarter

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Growth in spending slowed to 1.9% in the third quarter of 2013, the Reserve Bank said on Tuesday. "Growth in aggregate real gross domestic expenditure moderated from an annualised rate of 2.7% in the second quarter of 2013, to 1.9% in the third quarter. "This was the net result of a slower pace of increase in real final consumption expenditure by households and general government," said the bank in its December Quarterly Bulletin. According to the bulletin, growth in real disposable … [Read more...] about SA spending in slows in third quarter

Reserve Bank to focus on core CPI

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The Reserve Bank is to pay close attention to core inflation, so as to assess the effect of a weaker rand feeding through to prices in the economy. In its Monetary Policy Review (MPR) released on Tuesday, the central bank said the core inflation rate "has tracked higher and is the focus of heightened scrutiny". Core inflation excludes energy and food costs. "Stronger second-round effects from depreciation and sharp increases in unit labour costs would have significant and negative … [Read more...] about Reserve Bank to focus on core CPI