South African inflation is higher than expected, but the SARB keeps interest rates unchanged

--:--

In this podcast, STANLIB Chief Economist Kevin Lings discusses SA’s October CPI data, which surprised on the upside, rising to 5.9% year-on-year. He notes, though, that core inflation is still relatively well contained, at 4.4% y/y (from 4.5% in September). He also discusses the South African Reserve Bank (SARB)’s decision to leave interest rates unchanged at 8.25%. The SARB would probably like to keep rates unchanged into mid-2024 and then cut into 2025, but it has highlighted upside risks to inflation.

27 Nov 2023 English South Africa Investing · Business News

Other recent episodes

STANLIB Multi-Asset aims for smoothed returns as equities set for bumpy gains in 2024

Marius Oberholzer, STANLIB’s Head of Multi-Asset, says trends are positive for equities in 2024, but the team is managing expected market volatility. Once interest rate cutting begins, corporate activity should accelerate and earnings growth should start to materialise. In SA, there are still risks, including the looming elections, but signs…

30 Apr 15 min

Will the party happen in bonds this year? STANLIB Flexible Income Fund positions for interest rate cuts

Sylvester Kobo, STANLIB’s Deputy Head of Fixed Income, says as interest rates should normalize this year, the STANLIB Flexible Income Fund has significantly reduced its cash position compared with the same period last year. The fund, which has full flexibility, has shifted some profits from property into longer-dated bonds, but…

30 Apr 12 min

STANLIB Enhanced Multi Style Equity Fund takes benchmark-beating positions in Q1 2024

The STANLIB Enhanced Multi Style Equity Fund, an active SA equity fund, outperforms its benchmark, the JSE’s Capped Swix Index, by taking rational decisions, says Rademeyer Vermaak, Head of STANLIB’s Systematic Solutions business. In Q1, the fund benefitted from its positioning in gold counters as well as its offshore holding…

30 Apr 11 min

US Q1 GDP below expectations and Ipsos poll in SA shows new voting trends

Internationally, the focus of the past week was on US GDP growth in Q1 and personal consumption expenditure (PCE) inflation data for March. US GDP growth, at 1.6% q/q annualized, was below consensus forecasts of 2.5% and below Q4 growth of 3.4%, largely reflecting an increase in imports and a…

29 Apr 13 min

SA posts positive March inflation data and US interest rates cut are likely to be deferred again

In March, SA’s inflation was lower than expected, with headline inflation down to 5.3% y/y from 5.6% in February. However, there are pressures in key administered prices such as water and electricity, medical aid and education, which are unlikely to ease given the infrastructure backlog. This will make it hard…

22 Apr 9 min

All episodes