BUSINESS MAVERICK 168: Civil unrest unlikely to result in an SA Reserve Bank interest rate cut this week

The looting and rioting that have laid waste to a swathe of businesses in KwaZulu-Natal and Gauteng in the wake of former president Jacob Zuma’s jailing will curtail economic growth this year but are not expected to spark a rate cut this week when the central bank’s Monetary Policy Committee meets.

Of course, “normalisation” would imply a “normal situation” and South Africa’s wildly distorted political economy, always abnormal at best, is currently bug-eyed and baying at the moon. Sarb’s revised growth forecast will be of more than passing interest when the MPC’s decision is unveiled on Thursday, 22 July. Its forecast in May was for growth of 4.2% in 2021 after a 7.0% contraction last year.

The rand has also been underpinned by surging prices for key commodity exports which have translated into hefty trade, terms of trade and current account surpluses. But that hinges on getting the exports out through ports, notably Durban, and key economic arteries such as the N3 were still blocked as we went to press.

Source: News Formal (newsformal.com)

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

SA has sufficient fuel stocks, despite Sapref closureBut AA warns that panic-buying could make matters worse
Source: BDliveSA - 🏆 12. / 63 Read more »

SA Olympic soccer team report three Covid-19 cases in TokyoSouth Africa have confirmed three positive Covid-19 cases in their soccer squad for the Olympic Games in Tokyo, including players Thabiso Monyane and Kamohelo Mahlatsi.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

LIVE | Ramaphosa speaks on Mandela Day amid turmoil in SA | News24A picture of calm is beginning to emerge in parts of KwaZulu-Natal and Gauteng following days of looting and violence, leaving many dead, while communities continue with clean-up operations. Follow News24’s coverage here. Say hi to them Nonsense cex_za In Free State there's no looting.... We leave in harmony and peace... within our means. We honestly don't believe in Vandalism... We say no to Anger issues.
Source: News24 - 🏆 4. / 80 Read more »

SA social unrest and implications for national securityIf the events of the past few days had been a conventional war SA would be in dire straits
Source: BDliveSA - 🏆 12. / 63 Read more »

Team SA hit by Covid crisis on the eve of Tokyo OlympicsThree members of South Africa’s football team and Springbok Sevens coach Neil Powell have tested positive for Covid ahead of the Tokyo Olympic Games.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Covid-19 rocks Team SA as Blitzboks coach Neil Powell and two SA under-23 players test positiveBlitzboks coach Neil Powell and two SA under-23 players have tested positive for Covid-19 in Japan‚ Team SA management said in a statement from Tokyo on Sunday.
Source: TimesLIVE - 🏆 28. / 59 Read more »