South Africa’s reserve bank kept its interest rate unchanged recently and now comes decision time again, up, down, sideways, who knows, whatever the decision is there were many members of the Monetary Policy Committee who called for a rate cut. So what's next.
Consumer spending remains low - so a move is needed.
Electricity costs are ready for a spike and....
Electricity price increases are the “single biggest risk to the inflation outlook,” Governor(ess) Jill Marcus of SA Reserve bank said. Eskom Holdings Ltd., the state-owned power utility, has proposed raising prices by 35 percent a year over the next three years. That will probably boost the inflation rate by 0.3 percentage points each year, according to the South African Chamber of Commerce and Industry. Shame on you Eskom.
So, at least the Rand has strengthened in areas - thats good. Cosatu and the Unions want to Unionise the SA Reserve Bank and and and Good, Bad, well depends where you are looking from.
Whatever happens, we believe a 0.5% rate drop will stimulate the lending banks to drop their rates, offer a relief for us on the streets so that we can spend not on luxuries but simple basics and remove the 2009 blues for the rest of the year. We have 2010 World Cup around the corner, a boost now will definitely kick off as the whistle blows! Go Bafana (2010 World Champs...I may dream)
4 comments:
Well i think its very difficult for the people of South Africa to stay with the same rates. I think they were looking for some relief from the government and banks.
I recently came across your blog and have been reading along. You have provided good information trough your post.
Thank youvery much for the comments guys. Home loans: I agree, the problem is that the minute the rate drops, we have increae the next month. Or they drop the rates and then the petrol price goes up!
It's like a never ending fluctuation in pricing here...
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