Tag: South African Reserve Bank

In the next few hours the South African Reserve Bank governor is due to announce the MPC rate decision, which many analysts believe that there will be a rate cut of 50 Basis points. Joining CNBC Africa to give insight on South Africa’s monetary stimulus support during Covid-19 is Razia Khan, Chief Economist for Africa and the Middle East at Standard Chartered Bank.

South Africa's Minister of Economic Development Ebrahim Patel said that the country could rapidly move to phase 3 of lockdown should it avoid a sharp increase in levels of infections as 1.5 million people prepare to return to work as the country enters phase 4.

In order to help small and medium enterprises, support the economy and save jobs, the South African Reserve Bank (SARB) and the National Treasury are partnering with members of the Banking Association South Africa (BASA) to roll out a R200 billion Covid-19 loan scheme.

Investment holding company, PSG Group has reported a 17 per cent headline earnings per share increase for its full year results ended February. But the company has noted that it is bracing itself for the future of a post COVID-19 crisis. The company has declared a final dividend of 239 cents per share which is a 48 per cent decrease from the previous year. This decrease was due to Capitec, the group’s largest investment and contributor not declaring a final dividend in line with the South African Reserve Bank’s guidance to banks. PSG Group CEO, Piet Mouton joins CNBC Africa for more.

The COVID-19 lock-down is expected to cost South Africa’s economy over one trillion rand in lost output. One of the ways to fund South Africa’s recovery could be for the Reserve Bank to follow its peers globally and print money – a move, which up to now, the bank has been reluctant to do. That’s the view of Professor Brian Kantor, Chief Strategist & Economist at Investec Wealth & Investment.

The South African Reserve Bank has cut the repo rate by 100 basis points which leaves the repo rate at 4.25 per cent per annum. The May 2020 meeting of the MPC was moved earlier and took place today. The announcement comes a few weeks after the MPC cut the repo rate by 100 basis points in March as well. This is what the SARB governor Lesetja Kganyago had to say.

Central banks and finance ministers around the world have been scrambling for a solution to curb fears over covid-19 and prevent a deep global recession. What coronomics should our own country be following as the South African Reserve Bank starts its two-day monetary policy committee meeting tomorrow? Economist, Duma Gqubule and Isaah Mhlanga, Chief Economist at Alexander Forbes join CNBC Africa to give insight.

The South African Reserve Bank is going ahead with the sale of its stake in African Bank and is now looking for a transaction advisor to assist the central bank with the feasibility of disposing the 50 per cent shareholding it acquired from African Bank. Joining CNBC Africa to discuss this process is Basani Maluleke, CEO, African Bank.