Last week, US President Trump signed legislation to end the US government shutdown, while locally, finance Minister Enoch Godongwana tabled the 2025 MTBPS, preserving the crucial debt-to-GDP peak at 77.9% this year while adopting a 3% inflation target and reinforcing fiscal consolidation. SA’s sovereign credit rating was upgraded by S&P.
Last week, the US government shutdown extended into its sixth week, delaying key economic data releases and complicating Fed policy decisions. Global markets navigated persistent uncertainties, with Fed officials debating the pace of rate cuts amid inflation concerns. Locally, South Africa’s PMI signalled contraction, while experts anticipated a cautiously optimistic Medium-Term Budget Policy Statement (MTBPS) amid brighter fiscal prospects.
Last week, the Federal Reserve lowered the federal funds rate by 25 basis points, its second consecutive cut, citing rising risks to employment and slowing job gains. Locally, South Africa’s PPI inflation rose for the fourth straight month to 2.3% year-on-year in September from 2.1% the month prior. The print was below market expectations of 2.6%.
Last week, global financial markets focused on the easing in trade tensions between the US and China, while locally South Africa’s exit off the greylist.
Last week, the IMF raised its global growth forecast for 2025, while Global markets continued to navigate the US government shutdown. Locally, Electricity Minister Dr Kgosientsho Ramokgopa unveiled the Integrated Resource Plan (IRP) 2025, aiming to transform the energy sector into an industrialisation and job creation driver
Last week, the US Federal Reserve (Fed) released the September meeting minutes when the Fed cut rates by 25 basis points. The minutes noted moderating economic activity, elevated inflation, and rising unemployment, with uncertainty about the outlook as the main factor influencing the decision. Locally, SARB Governor Lesetja Kganyago clarified that there is no disagreement between the central bank and National Treasury on lowering the inflation target.
Global financial markets remain focused on the US government shutdown, while locally, South Africa’s trade balance registered a smaller-than-expected surplus in August.
Last week, global markets grappled with heightened uncertainty as the US faced a looming federal government shutdown. In South Africa, there is also uncertainty, as the African Growth and Opportunity Act (AGOA) nears its expiry, while Eskom and Transnet progress is not yet translating into improved GDP numbers.
Last week, the US Federal Reserve (Fed) lowered the federal funds rate target range by 25 basis points to 4% – 4.25%. The move was in line with market expectations. Locally, the SA Reserve Bank (SARB) opted to keep the repo rate on hold at 7%.
Last week, annual US headline consumer inflation increased to 2.9% in August, up from 2.7% in July. This was the fastest increase since January. Locally, according to Stats SA, real GDP expanded by 0.8% quarter on quarter in 2025Q2, following an unrevised growth of 0.1% in 2025Q1.
