Mboweni expects a slow down

By Staff Writer

Compare banks and save with Justmoney

Mboweni expects a slow down

The Guv, Tito Mboweni, gave a speech at a diplomat's dinner last night.

The Mail and Guardian reported that Mboweni noted that our inflation outlook had improved and that hopefully the downward movements we have seen since August was becoming a trend. This may bode well for any early cut n the interest rate. Guv Tito also pointed out that South African banks had largely escaped the financial crisis.

Sound policies including the National Credit Act and exchange controls have limited our exposure to the 'toxic' securities that have brought down the rest of the world's financial systems. However Mboweni also noted that there were obstacles still in our path notably the impact on imports caused by the weakening Rand against international currencies.

The Guv was confident that we would avoid a recession but warned that the real economy would be hit by the global collapse and that a slowdown was to be expected.

Business Day covered the Reserve Bank Governors' speech highlighting that Mboweni believes that policy makers should 'take note' of both the lower inflation and slower growth when they make their decisions. The repeated that Mboweni was 'hopeful' that inflation was now on a downward trend. The rest of the article looked at international economics.

iAfrica also covered the governor's speech quoting him as saying that the outlook "is not viewed as being particularly favourable". In a related article iAfrica spoke to an economist who felt that all the necessary space for an early rate cut to happen was there. This same economist has received a lot of flak recently for suggesting that in reality inflation was already 2 percentage points lower than published due to the re-weighting of the CPI basket of goods. However it seems that the market believes him as it is already pricing these figures in. He also reckoned that a further percent would be cut due to effects such as the lower price of oil. He advised policy makers to rather target bolstering consumer confidence and propping up new vehicle sales.

The Times reported that PPI or Producer Price Index has dropped. This is the measure of inflation for producers, which means how much more is it costing to make stuff. These drops are due to lower power and petrol prices but it was noted that these savings were not being passed on to the consumer.

The Mail and Guardian also covered these figures, noting that they had dropped from 16% to 14.5%. They carried comment from Nedbank, stating that 'inflationary pressures were moderating'.

In other news The Dispatch reported on the SA institute of race relations annual review. There was concern that income inequality has risen over the last ten years, although they pointed out that this could in part be explained by a general increase in incomes.

Justmoney says that things may be looking a bit brighter but now is still the time to increase your savings, get a cheaper credit card and wait for the storm to pass.

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift