STANLIB STANLIB Podcasts

SA’s new GNU Cabinet and what latest SA & US inflation data means for interest rates

--:--
In SA’s new Government of National Unity (GNU) Cabinet, the number of ministers and deputy ministers has grown, which is costly, and there are a lot of new faces in Cabinet whose competence cannot be judged yet. However, there are positive aspects: there is continuity in the key economic cluster, implying that fiscal policy is likely to stay the same, and reform of SOEs is expected to continue under the Presidency.
SA’s PPI inflation rate for May at 4.6% was below market expectations, and the details were encouraging, other than for manufactured food inflation. Trends should lead to interest rate cuts starting in September. In the US, core PCE was also in line with expectations at 2.6%, close to the US Federal Reserve’s 2% target, and a September interest rate cut remains on the horizon.
Click here to listen to the podcast.
1 Jul English South Africa Investing · Business News

Other recent episodes

US labour market strength surprises; SA collects more revenue than expected

Several US labour market reports released last week were surprisingly strong. The US created 254 000 jobs in September, well above expectations for 150 000 jobs, while unemployment fell to 4.1% from 4.2%. This encouraged the equity market, as it suggested the US is not about to move into recession,…
7 Oct 7 min

China takes steps to stimulate the economy; SA’s economic data remains weak

China’s authorities last week unveiled a series of measures designed to stabilize the property sector and stimulate consumer spending. These measures included a cut in banks’ reserve requirements and in interest rates. Financial markets were encouraged, having expected any policy stimulus would only follow the US presidential election. Sentiment in…
30 Sep 14 min

US Fed and SARB interest decisions loom in the next few days

The US Federal Reserve will meet on Wednesday this week to discuss interest rates and the South African Reserve Bank (SARB) will meet on Thursday. Both central banks are expected to cut rates by 25 bps and signal further cuts in the rest of this year and 2025. The SARB…
16 Sep 5 min

US labour market trends weaken, SA’s GDP picks up marginally

The US August labour market report was mixed. It showed an improvement in the unemployment rate to 4.2% from 4.3% in July, but the number of jobs created was below the monthly average. Whether the US Fed will cut interest rates by 25 bps or 50 bps later this month…
9 Sep 8 min

Encouraging trends are evident in latest US, European inflation data

US core PCE inflation for July, at 2.6% y/y, was welcomed because it shows inflation is under control, although it still above the US Federal Reserve’s target of 2%. In Europe, consumer inflation has moderated to 2.2% y/y, close to the European Central Bank’s target of 2%, which may prompt…
2 Sep 9 min
All episodes