Hits & Misses
Inflation ticks up in target range; IMF cuts SA growth estimate
INFLATION
remained well below the midpoint of the Reserve Bank’s target range in
December, even as the rate rose for the first time in four months. Consumer-price growth quickened to 4% against 3.6% in November, Stats SA said. Prices rose 0.3% in the month.
GOLDMAN
Sachs received the nod from the Reserve Bank to run a bank in SA in a move that contrasts with recent downsizing and departures by many of its competitors in the country. The group has also been admitted as a member of the JSE interest rate and currency derivatives market and will offer foreign exchange and bond trading to corporate and institutional clients.
FOREIGN
direct investment in SA remained steady in 2019 despite policy uncertainty in the country that threatens to hamper growth, the UN Conference on Trade and Development said in a global report.
THE
IMF cut its economic growth estimates for SA, joining the World Bank in expecting the country to grow at less than 1% in 2020. The fund flagged structural constraints and deteriorating public finances that “are holding back business confidence and private investment”, in its 2020 World Economic Outlook update. It forecasts SA to grow at 0.8% in 2020, down 0.3 percentage points from its October 2019 projections.
THE
Reserve Bank’s composite leading business cycle indicator declined on an annualised basis for the 14th consecutive month in
November. The fall of 0.9% continues the streak of declines for the year. On a monthon-month basis, it rose 0.5%.
SAMANCOR
Chrome warned its unions that it could cut up to 2,488 jobs because of a global downturn in the chrome price and a rise in Eskom’s electricity prices.