Category: Investment

Global markets remain fixated on developments around the worsening Israel-Iran conflict. Locally, SA is working towards being removed from the Financial Action Task Force (FATF) ‘grey list’.

Last week, U.S. Federal Reserve policymakers continued to adopt a cautious stance on interest rates amid mixed employment data and tariff concerns. In South Africa, the Reserve Bank’s proposal to lower the inflation target could save billions in debt costs.

Last week, President Donald Trump’s reform agenda suffered a setback after a US trade court ruled that most of the recently introduced global tariffs were illegal. Locally, the Monetary Policy Committee (MPC) of the SA Reserve Bank (SARB) decided to cut the repo rate by 25 basis points to 7.25% (prime to 10.75%).

Global financial markets continue to battle with the impact of tariffs, while locally, Finance Minister Enoch Godongwana finally delivered the long-awaited budget 3.0.

Prowess CEO and CIO Kelebogile Moloko reflects on Finance Minister Enoch Godongwana’s revised budget announcement and considers it’s broader potential significance for the nation…

Last week, S&P maintained SA’s credit rating, with a positive outlook despite rising unemployment. In the US, April CPI was softer at 2.3% y/y, but tariffs raised inflation concerns among Fed officials. Today, the focus shifts to President Ramaphosa’s meeting with President Trump, as he aims to ease SA-US tensions, and to Finance Minister Enoch Godongwana, as he tables a third version of the Budget in parliament.

Last week, the US central bank voted unanimously on Wednesday to keep the benchmark federal funds rate in a range of 4.25% to 4.5%, where it’s been since December. Locally, the launch of the second phase of Operation Vulindlela (OV 2.0) took center stage in a relatively quiet domestic data week.

US GDP undershot expectations last week, reflecting the first signs of ripple effects from President Trump’s tariff policy. Locally, Finance Minister Enoch Godongwana announced that the third tabling of the Budget would take place on Wednesday 21 May.

Last week, global markets remained sensitive to evolving U.S.-China tariff developments, with both nations exploring selective exemptions amid ongoing trade tensions. Locally, the decision to cancel the proposed VAT increase, combined with inflation dropping to a multi-year low, has raised expectations for potential interest rate relief as the Monetary Policy Committee (MPC) convenes this week.

Last week, President Donald Trump intensified his criticism of Jerome Powell, adding to investor jitters over the Fed’s independence and the chair’s position. Locally, SA Reserve Bank governor Lesetja Kganyago has warned against a knee-jerk reaction to newly imposed (and now paused) US tariffs, urging businesses to focus on improving competitiveness rather than resorting to protectionist measures.