South African Reserve Bank - The African Mirror

Apr

23

2024

South Africa faces upside risk to inflation, financial conditions, central bank governor says

BUSINESS

SOUTH Africa faces upside risks to its inflation outlook, Central Bank Governor Lesetja Kganyago said, but the latest data has not shown evidence of price pressures from food despite adverse El Nino weather wreaking havoc across Africa. Data out on Wednesday had shown headline inflation fell to 5.3% year-on-year, down from 5.6% in February and coming in a touch below analyst expectations. In its March decision, the South African Reserve Bank (SARB) said headline inflation was expected to reach 4.5% - the midpoint of its target range - only at the end of 2025, later than previously forecast. "There are upside risks to the…

Sep

29

2023

By The African Mirror

South Africa’s foreign direct investment inflows rise to $2.8 billion in second quarter

BUSINESS

SOUTH Africa recorded foreign direct investment inflows of 53.8 billion rand ($2.8 billion) in the second quarter of 2023, up from inflows of 0.5 billion rand in the first quarter, central bank data showed. The South African Reserve Bank said in its Quarterly Bulletin that the acquisition of a domestic beverage company by a non-resident firm contributed to the increase. Heineken said in April that it had completed the purchase of wine and cider company Distell. Second-quarter portfolio investment outflows fell to 4.6 billion rand from 32.0 billion rand in the previous quarter, the Quarterly Bulletin said.

Jul

06

2023

By TANNUR ANDERS and ANAIT MIRIDZHANIAN

Focus: South African food producers warn of higher prices as infrastructure crumbles

BUSINESS

SOUTH African food producers, among the biggest on the continent, are spending hundreds of millions of rand mitigating prolonged rolling power blackouts, water supply issues and crumbling infrastructure. This investment, sometimes at the cost of essential capital expenditure, will eventually be passed onto consumers, making food prices higher for longer, food companies, economists and lobby groups told Reuters. It comes at a time when South Africa is already struggling with acute unemployment, 14-year high-interest rates and ballooning inflation and complicates efforts of the South African Reserve Bank (SARB) to ease interest rate hikes. "We are very aware of the struggles…

Jan

14

2023

By The African Mirror

South Africa’s ANC alludes to greater central bank jobs focus

NEWS

KOPANO GUMBI SOUTH Africa's African National Congress (ANC) alluded to a greater focus on job creation by the country's central bank in resolutions from its recent national conference but stopped short of calling for its mandate to be changed. ANC officials have for years toyed with the idea of broadening the central bank's mandate as the governing party has struggled to lower the unemployment rate, which officially stands at 33% and is among the world's highest. The resolutions on economic transformation seen by Reuters on Friday said the South African Reserve Bank (SARB) should implement the monetary policy "in a balanced…

Jan

19

2023

By The African Mirror

South Africa inflation dips to 7.2% y/y in December as forecast

BUSINESS

SOUTH Africa's headline consumer inflation slowed to 7.2% year on year in December from 7.4% in November, in line with analysts' forecasts, statistics agency data showed. Price pressures have been gradually easing in Africa's most industrialised economy after inflation struck a 13-year high of 7.8% year on year in July. The South African Reserve Bank has raised interest rates to fight inflation at its last seven monetary policy meetings since its latest tightening cycle began in November 2021. The central bank, whose next rate-setting decision is due on Jan. 26, targets inflation of between 3% and 6%. On a month-on-month basis,…