Hmm our 1% this week might just have gone bang... still crossing fingures though
Hmm our 1% this week might just have gone bang... still crossing fingures though
Garth
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Probably not a question as to whether to reduce rates - more to debate how much.South Africa's central bank will meet next week on interest rates, more than three weeks ahead of schedule, cementing the case for an early rate cut.
The bank said in a statement on its website it had changed meeting dates for the rest of 2009, with the monetary policy committee (MPC) meeting every month, except for July, without giving reasons for the change.
The MPC previously met every two months.
full story from M&G here
I'm pretty pleased to see the monthly meetings too, even if it is because of Tito and co's penchant for 0.5% changes. Let's face it - there isn't much prospect of the results of the previous month's meeting being seen in the figures presented to the next meeting.
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Do I smell a rat? Looming elections and all that...???
Looming recession and falling inflation data more like it.
To be fair, I've seen very little evidence of party political manipulation in the actions of the MPC so far. But maybe I'm just being naive.
Last edited by Dave A; 20-Mar-09 at 08:11 AM.
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Agreed - which blocks my theory the cuts would used for the election race. However could say it could even be the opposite, slow. Certainly no brash moves there
Garth
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Rates down another 1%
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I hope it starts a recovery process cause I'm seeing a dive still on the go,
The cost of living hasn't affected its popularity.
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It probably is only part of the solution. But at least it helps.
I think Tito is right.As he cut the Reserve Bank's official repo rate by a full percentage point yesterday, governor Tito Mboweni said: "The world has changed radically." He warned: "Nobody must think the cure for the rapidly changing global and domestic situation is just monetary policy."
Pressed on how quickly interest rates might fall, he said South Africa needed more than monetary and fiscal stimulus.
"There is a danger that in the current debate many countries might forget one of the critical issues confronting economic policy is structural change. It would be folly for us in South Africa to forget that we have a lot of work to do in terms of industrial policy and focus only on the financial market crisis."
full story from Business Report here
If you read the article, there is also some comment about the trade deficit. Clearly inflation data is not the only thing on Tito's mind at the moment.
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Are we in for another rate cut?
The week ahead will bring a raft of economic data and probably a rate cut. On Thursday, the Reserve Bank monetary policy committee (MPC) will announce whether to make a further cut in its official repo rate - currently at 9.5 percent.
After a 5 percentage point hike between June 2006 and June last year, the bank started cutting the repo rate from its peak of 12 percent in December.
As the MPC starts its two-day meeting on Wednesday, Statistics SA will release inflation figures for last month that will indicate how long it will take before inflation falls back within the bank's target range of between 3 percent and 6 percent.
Consumer price inflation, which has been above the target ceiling since March 2007, peaked at 13.4 percent in August. Its downward trend to 8.1 percent in January was halted when it rose to 8.6 percent in February.
from Business Report here
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