US FOMC minutes released last week confirmed that US policymakers are unlikely to be hasty in lowering rates. Locally, the South African economy unexpectedly contracted by 0.3% in Q3 2024, driven by a sharp slump in farm output due to drought.
Last week, US equity markets rallied, and treasuries strengthened, as investors sought safe-haven investments in the wake of the escalating Ukraine-Russia conflict. Locally, the Monetary Policy Committee (MPC) unanimously decided to cut the repo rate by 25 basis points to 7.75% in line with market expectations.
The United States could see fewer cuts than previously forecasted. Locally, S&P revised the outlook on South Africa’s local (BB) and foreign currency (BB-) from stable to positive.
Last week, Donald Trump was won the 2024 US elections in a historic comeback. Trump claimed a convincing victory also winning the popular vote The Republicans also won control of the US Senate and retained a majority in the House of Representatives.
Last week, the US non-farm payrolls (NFP) for October significantly undershot expectations, wqhile locally, Finance Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS) for 2024, painting a cautious picture of growth…
Finance Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS) for 2024. In his statement, he paints a cautious picture for growth while highlighting an ambitious infrastructure-driven plan…
The eyes of the market are now firmly fixed on next week’s US election, which remains too close to call. Locally, the Governor Lesetja Kganyago reiterated his call for a lower inflation target…
Last week, Fed speakers continued to caution against expectations of aggressive US rate cuts, as the future path of monetary policy will be driven by incoming data and the economy’s performance. Locally, SARB Governor Lesetja Kganyago presented an argument to lower South Africa’s 3-6% inflation target, while this week, the IMF’s annual meeting takes place in Washington, as it releases its World Economic Outlook…
Although last week’s US inflation print showed a sixth consecutive monthly decline, it still came in above market expectations, while the Federal Open Market Committee (FOMC) minutes gave investors some direction on the possible rate path going forward. Locally, the Rand experienced volatility on the back of tensions in the Middle East and the FOMC output…
Fed Chair Powell suggests that 50bp cuts will not be the norm moving forward, Euro area inflation returns to the ECB’s 2% target, while vigilance remains high on the Middle East and the increasing potential for a widening and escalating regional conflict there…
