Interest Rates remain unchanged
The SA Reserve Bank’s monetary policy committee has again decided to keep the repo rate unchanged at 6.75%, a decision widely expected by analysts. The central bank’s governor Lesetja Kganyago made the announcement at a media briefing in Pretoria yesterday afternoon.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. Changes in the repo rate affect the prime lending rate, which is the lowest rate at which banks start lending to clients. With the repo rate unchanged, the prime lending rate will remain unaltered at 10.25%.
The bank last hiked the repo rate in November 2018 from 6.5% to 6.75%. The MPC kept rates on hold at its two last meetings in January and late March. Kganyago said …
Sixth Elections: How hard will the ANC be punished for State Capture?
South Africans will deliver their verdict on an ANC government whose last term of office has been beset by corruption, state capture and poor governance when they go to the polls in the country’s sixth democratic election on Wednesday.
Voting stations countrywide will open their doors at 07:00 and will remain open until 21:00. More than 27m South Africans out of an eligible voting population of almost 35m have registered to vote.
The governing ANC will be looking to limit the damage wrought on its support base by years of scandal, while the DA – the official opposition – is under pressure to maintain its growth trajectory. Julius Malema’s EFF, formed in 2013 when he led his supporters out of the ANC, looks set to be the big winners…
The Rand Exchange Rate one Day before Elections
One final day to go and the torturous period of electioneering formally draws to a close. We look forward to some calm returning post the official announcements on Saturday once the dust settles.
As we wind down, the latest IRR poll suggests that the ANC will finish off close to 53% with the EFF at 14% and the DA at 24%. The important number is the combination of the ANC and the EFF and the possibility that combined they can reach a two-thirds majority to allow them to force a change to section 25 of the constitution. Although the market has often felt that the best outcome would be a stronger ANC showing to give President Ramaphosa the mandate for reforms, the more logical best-case outcome might be for a smaller ANC win and a less …
ELECTIONS 2019: T minus 3 Days
5 May 2019, Sunday, and South Africa’s stadiums fill one more time not with sports, but with supporters attending the final rally of their political party in the upcoming national general elections on coming Wednesday, 8 May 2019.
The democratic and now constitutional right to vote was hard fought for 25 years ago, under a liberation movement, which called itself the African nNtional Congress. This freedom movement has virtually fought in the trenches of South Africa’s Apartheid politics, using legal and illegal means alike – at that time “for the greater good”! The goal was achieved, the apartheid era came to an end, the first elections took place in 1994 and the iconic leader of the liberation movement, Nelson Rolihlahla Mandela bec…
ANC and DA are about to lose Majorities in Gauteng and the Western Cape
The DA’s majority in the Western Cape is under threat, the ANC is losing more support in Gauteng and the EFF is on the growth path nationally. These are some of the key findings contained in the the Criterion Report, a quarterly market research survey conducted by the Institute of Race Relations (IRR) into voter preferences, attitudes and the South African political landscape, which was updated and published today!
It has found that, nationally, the ANC majority is in the balance at 49.5% support down from 54.7% in February, while the EFF continues to grow, from 12.2% in February to 14.9% in April. The DA has remained stable at 21.3%. The report noted a small growth in black support for the DA. "As of April, the DA has…
Consumer Confidence dips below 2017 Levels
South African consumer confidence declined to its lowest level in more than a year in the first quarter as expectations of an economic recovery dimmed.
The consumer-confidence index was at 2 in the first three months of this year, dropping from 7 in the previous quarter, FirstRand’s First National Bank retail-lending unit said in an emailed statement this week. While a net majority of consumers remain positive, the gauge is at its lowest level since the final three months of 2017 and well off the record high of 26 when Cyril Ramaphosa took over as president a year ago.
“For the first time in just more than a year, consumers do not expect South Africa’s economic prospects to improve over the next 12 months,” it said.
Pre-Election Polls predict vote-loss for ANC and DA
With less than two weeks to go before South Africans head to the polls in the 2019 national election, the latest poll results from research group Ipsos shows that the DA and ANC may be in trouble. The poll, conducted between March and April 2019 using a demographically representative sample of over 3,600 people, continues a trend seen in many other pre-election polls – showing a drop in support for the DA and ANC, while support for the EFF rises.
According to the latest results, published by the City Press, the *ANC*’s support has dropped from around 61% in its March poll to 56.9% in April. This is down from a 62.2% share of the vote in the 2014 national election. The DA has dropped even further from 18% in March to just 15% in Apri…
Rand still riding on top of Economy Waves
It is a pleasure to share some positive news for a change as the Rand is currently doing better than most give him credit for.
Only four weeks away from South Africa’s National General Election, the pre-polling campaign machines of each political party are still not in full-swing as the most of the street corners bear lonely witness. Though political efforts are mounting and elevating the levels of tension and discourse, the rhetoric is becoming increasingly polarising and will once again be in full view today as the protests in Alexandra migrate to Gauteng’s business hub of Sandton.
Whether that ultimately impacts on financial market sentiment is at this point uncertain!
If it does, it will only be marginal though. A more like…
Interest Rates remain unchanged
In its second meeting in a row, the Monetary Policy Committee of the South African Reserve Bank showed unity i leaving the interest rates in South Africa unchanged with the Repo Rate at 6.75% dictating a prime lending rate by the major banks of 10.25%.
Fior many it came as no surprise as the the inflation rate hovers steadily below the 5% mark and within the given bandwidth of 3% – 6%. However, one can see a cautious yet conservative MPC. A more future-bound and aiming at clairvoyance MPC could have sent a message by cutting the repo rate by 0.25% i order to anticipate Moody’s postpone rating decision and to therefore cement already an attraction to stay or invest into the Rand; especially in light of the recent rates decision of the …
The TRUTH about South Africa's Power and Load Shedding
Most of the officials at ESKOM and at the power stations, which still produce power, are on holiday, and a skeleton repair team is out to analyse the damages and fix the transmission lines between South Africa and the Hydro Power Plant at Cahora Bassa in Mozambique. Meanwhile and back at the base, South African residents duck and dive between load-shed areas to give their children the school holiday they deserve…..
Ever tried to explain a six-year old that a power plug does not guarantee it also provides electricity? And why Mommy and Daddy do not use the garage remote in the moment and skip their morning coffee at their favourite café around the corner? Maybe not, but we think WE need to explain what is going on in the moment and wha…