SA keeps interest rates unchanged, while SA retail sales show another monthly decline

Loading player...
At its latest Monetary Policy Committee meeting, the South African Reserve Bank kept the repo rate unchanged at 8.25% but two members argued for a cut of 25 bps, which is an indication of future direction. The committee revised its forecast of end-of-year inflation to 4.3% from 5.2% at present. We expect the bank will cut the repo rate by 25 bps at its September meeting and by another 25 bps in November.

SA’s May retail sales data was disappointing: sales fell 0.7% m/m. Mining and manufacturing output also declined in May. The improvement in electricity generation has helped, but it is not a solution in itself. The only way to lift the growth rate meaningfully is to bring the public sector into partnership with government to invest in infrastructure, and this is starting to happen.
22 Jul 2024 English South Africa Investing · Business News

Other recent episodes

SA economy grows, but not fast enough; US small businesses struggle

In this podcast, STANLIB’s Chief Economist, Kevin Lings, unpacks SA’s GDP growth and the latest US ADP report on US private sector employment. The local economy grew by an encouraging 2.1% year on year, largely because historical data was revised higher, but he warned this is not a sustainable growth…
8 Dec 10 min

SARB makes cautious 25 bps rate cut but next US rate cut is uncertain

In this podcast, STANLIB’s Chief Economist, Kevin Lings, considers the factors that are restraining SA’s inflation rate and have influenced the Reserve Bank in cutting the benchmark interest rate by 25 bps at its latest meeting. He also analyses latest US jobs data, which showed an increase in unemployment to…
24 Nov 16 min

Will AI boom become AI bust?

In the seventh episode of our “The More You Know” series, Mark Lovett, STANLIB Head of Investments, shares his experience of other market bubbles to help put the current AI hype into context. He emphasises the need for investors to identify the winners and losers in this new technology wave…
18 Nov 21 min

S&P surprises with positive outlook for SA

In this podcast, STANLIB’s Chief Economist, Kevin Lings, examines the reasons why S&P decided to revise SA’s credit rating from BB- to BB, while Fitch kept its rating unchanged. SA’s weak GDP growth rate remains a concern for all credit rating agencies but while S&P took a more positive view,…
17 Nov 16 min