The South African Reserve Bank (SARB) has cut the Repurchase (repo) rate by 50 basis points. Effective 22 May 2020, the repo rate will be 3.75% per annum. SARB Governor Lesetja Kganyago made the announcement on Thursday following a Monetary Policy Committee (MPC) meeting. The cut is the third since the advent of COVID-19 in the country in March. In that month, the SARB Monetary Policy Committee cut the repo rate by 100 basis. A second 100 basis points cut was announced in … [Read more...] about Repo rate cut by 50 basis points
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The Reasons Why the Rand Felt Poorly Earlier This Year
The Rand depreciated in the aftermath of the national elections due to policy uncertainty and the larger-than-expected contraction in the domestic economy in the first quarter of 2019, a SARB’s Quarterly Bulletin has noted. According to the South African Reserve Bank (SARB) report released today, the first quarter of the year was characterised by severe electricity-supply disruptions, and continued weak business confidence and caution ahead of the national elections in May. “Real gross … [Read more...] about The Reasons Why the Rand Felt Poorly Earlier This Year
Hamza Farooqui comments on rumour that SARB has recommended banking apartheid is maintained
Hamza Farooqui comments on rumour that SARB has recommended banking apartheid is maintained: On Friday (3 February), Bloomberg News published a story in which it claimed the South African Reserve Bank (SARB) made a recommendation to the Treasury that Vardospan’s bid to create South Africa’s first 100% black-owned bank, should be rejected. If Vardospan were to be successful in its bid to acquire Habib Overseas Bank, it would be a significant first step in ending the banking … [Read more...] about Hamza Farooqui comments on rumour that SARB has recommended banking apartheid is maintained
Shocking increase in inflation
Consumer price inflation (CPI) has breached the upper limit of the South African Reserve Bank's (Sarb's) target range by accelerating to 6.2% year-on-year in January 2016. The consensus forecast for headline CPI, which includes the volatile food and energy components, was for an increase to 6.0% in January. The Sarb's target rage is between 3% and 6%. Statistics SA announced on Wednesday that the headline CPI (for all urban areas) annual inflation rate in January 2016 was 6.2%. This rate was … [Read more...] about Shocking increase in inflation
Prime lending rate up to 10.25%
South African Reserve Bank (Sarb) governor Lesetja Kganyago on Thursday announced a 50 basis-point increase in the repo rate to 6.75%, in line with the consensus. This means the prime lending rate will now be 10.25%. Lending rates have risen by a cumulative 175 basis points since late January 2014. Kganyago said the Sarb's latest inflation forecast has deteriorated. Inflation is still expected to breach the upper end of the target and remain outside its limits for the entire focus … [Read more...] about Prime lending rate up to 10.25%
Interest rates will rise on back of poor rand – experts
Nedbank's economic unit said on Wednesday that in an environment with a rapidly deteriorating inflation outlook, the South African Reserve Bank (Sarb) would have no choice but to raise rates to contain inflationary expectations and restore financial stability. This was in reaction to the announcement by Statistics SA that South Africa's annual consumer price inflation rose to 5.2% in December 2015. This was in line with expectations and 4 percentage points higher than November's 4.8% rise. It … [Read more...] about Interest rates will rise on back of poor rand – experts
SARB pits monetary policy stance under the microscope
Amid the rand's tumultuous start to the year, the SA Reserve Bank (Sarb) said that it will assess the appropriateness of the current monetary policy stance. "The opening weeks of 2016 suggest that the conduct of monetary policy in South Africa will be further complicated," said deputy governor Daniel Mminele, addressing European Economics and Financial Centre in London on Tuesday. "The currency remains a key source of risk for inflation in South Africa, despite some recent evidence of … [Read more...] about SARB pits monetary policy stance under the microscope
Residential Building and Fixed Investment remains low
As at the 2nd quarter of 2015, the SARB (Reserve Bank) reported low levels of Residential Fixed Investment relative to the size of the country's economy. At 1.4% of Gross Domestic Product (GDP), the level remained well below the 2007 high of 2.7% of GDP, a level that had been reached at the back end of South Africa's greatest residential boom on record. The completion of the 3rd quarter 2015 residential building picture, with this week's release of StatsSA Building Stats, suggests that the level … [Read more...] about Residential Building and Fixed Investment remains low
Consumers get slapped
Jingle Bells are sounding more like alarm bells for over-indebted South Africans as the SA Reserve Bank's (Sarb) monetary policy committee (MPC) hiked interest rates by 25 basis points on Thursday. SARB governor Lesetja Kganyago announced that the repo rate, the rate at which the SARB lends money to commercial banks, increased to 6.25%. This takes the prime lending rate to 9.75%. With the US dollar continuously strengthening over the rand in the last two weeks and the US Federal Reserve … [Read more...] about Consumers get slapped
Reserve Bank likely to keep rates unchanged – expert
The Monetary Policy Committee of the SA Reserve Bank (Sarb) is likely to keep interest rates unchanged at its meeting on Thursday, according to international market research company Citi Velocity. "Our baseline forecast is that the repo rate will remain unchanged at 6%. That said, it is another close call," the company said in an overview. The Sarb will only hike if it's inflation profile results in a two-quarter breach (extended) and we see this unlikely, Citi Velocity said. "The … [Read more...] about Reserve Bank likely to keep rates unchanged – expert
SARB could be forced into more rapid interest rate hiking
"There are some things that are different between now and the end of the early-1980s residential boom, but some are ominously similar," says FNB Household and Property Sector Strategist John Loos. While the residential market is no longer "booming" in terms of demand or house price growth, it remains in "boom time" territory" when it comes to the level of house prices in real terms (i.e. when we adjust house prices for consumer price inflation over time). Real house prices are only … [Read more...] about SARB could be forced into more rapid interest rate hiking
Interest rate hike expected
A 25 basis point interest rate hike can be expected at Thursday's meeting of the Monetary Policy Committee (MPC) of the SA Reserve Bank (Sarb), according to Peter Attard Montalto, Nomura analyst. "Rewinding to the last meeting, it is clear that two out of the six members were happy enough to hike rates then (by 25bp). We believe they were Deputy Governor Daniel Mminele and Deputy Governor Kuben Naidoo," said Montalto. "We believe there is no substantive reason for those two to not back a … [Read more...] about Interest rate hike expected
Bleak near term economic outlook
The SARB (South African Reserve Bank) Leading Business Cycle Indicator continued to point to a bleak near term economic outlook, recording a year-on-year decline of -3.4% in May 2015. The indicator, often a good indicator of what economic activity growth will do in the near term, has now recorded its 20th consecutive month of year-on-year decline. Month-on-month, the May decline was an equally dismal -1.72%, although month-on-month rates of change can admittedly be volatile. The list of … [Read more...] about Bleak near term economic outlook
Interest Rate Hike ‘not expected’ today
Indebted South Africans may breathe a sigh of relief if the South African Reserve Bank's Monetary Policy Committee decides not to hike interest rates on Thursday. South African inflation having risen to 4.5% in April and not to 4.7% as expected has actually taken the heat off the Reserve Bank to raise interest rates at its Monetary Policy Committee (MPC) meeting on Thursday, according to global foreign exchange house Citi. This is from 4.0% in March and the second downside surprise since … [Read more...] about Interest Rate Hike ‘not expected’ today
SARB to investigate African Bank dealings
The South African Reserve Bank (SARB) has set up a formal independent investigation which will look into the business trade and dealings of African Bank. This after the central bank placed African Bank under curatorship on 10 August. In a statement on Tuesday, the central bank said that Advocate JF Myburgh was appointed as commissioner of the investigation and will be assisted by Vincent Maleka SC, and Brian Abrahams with effect from 30 August 2014. "Advocate Myburgh will, among other … [Read more...] about SARB to investigate African Bank dealings
