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<p>Joining CNBC Africa for a post-MPC panel analysis is Annabel Bishop, Chief Economist, Investec, Koketso Mano, Senior Economist for FNB and Reza Ismail, Head of Bonds at Prescient Investments.</p>


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Post-MPC Analysis: Kganyago keeps rates on hold

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<p>The South African Reserve Bank&#8217;s Monetary Policy Committee sat for its second meeting of the year and voted unanimously decided to keep the repo rate unchanged at 8.25 per cent. Reserve Bank Governor, Lesetja Kganyago explains the rationale behind the committee&#8217;s decision.</p>


SARB keeps repo rate unchanged at 8.25% (full speech)

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<p>Joining CNBC Africa for a post-MPC panel analysis is Annabel Bishop, Chief Economist, Investec, Johann Els, Chief Economist, Old Mutual and Carmen Nel, Head of Multi-Asset Strategy, Terebinth Capital.</p>


Post-Analysis: SARB keeps rates on hold

<p><iframe loading="lazy" src="https://www.youtube.com/embed/BOc1jKzPBjE" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>The South African Reserve Bank&#8217;s Monetary Policy Committee sat for its first meeting of the new year and voted unanimously decided to keep the repo rate unchanged at 8.25 per cent. Reserve Bank Governor, Lesetja Kganyago explains the rationale behind the committee&#8217;s decision.</p>


Kganyago keeps repo rate unchanged at 8.25% (full speech)

<p><iframe loading="lazy" src="https://www.youtube.com/embed/Am1lHPdqxdE" width="640" height="360" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p>In its final meeting of the year, the South African Reserve Bank’s Monetary Policy Committee voted unanimously decided to keep the repo rate unchanged at 8.25 per cent. Reserve Bank Governor, Lesetja Kganyago explains the rationale behind the committee&#8217;s decision.</p>



<ul><li>Digital rand at least a few years away, says deputy governor</li></ul>



<ul><li>Cen bank digital currency likely only for wholesale purposes</li></ul>



<ul><li>SARB hopes crypto assets could be regulated within 15 months</li></ul>



<ul><li>Regulation to prevent theft, fraud, undermining SARB authority</li></ul>



<p>By Rachel Savage and Promit Mukherjee</p>



<p>LONDON/JOHANNESBURG, May 18 (Reuters)&nbsp;&#8211;&nbsp;A digital rand in South Africa could cut the high cost of cross-border payments for banks but its introduction is still a few years away, a senior central bank official said.</p>



<p>However, regulation of crypto assets&nbsp;is in the offing and might come into force within nine to 15 months, South&nbsp;African&nbsp;Reserve Bank (SARB) Deputy Governor Kuben Naidoo told Reuters in an interview.</p>



<p>It costs 13% of a transaction to remit money from South Africa to another country, more than double the average of the Group of 20 (G20) leading global economies, according to a 2021&nbsp;<a href="https://remittanceprices.worldbank.org/sites/default/files/rpw_main_report_and_annex_q421.pdf" target="_blank" rel="noreferrer noopener">World Bank report</a>.</p>



<p>Sending money to South Africa costs 6.2%.</p>



<p>Some countries are planning to introduce e-versions of traditional currency, known as central bank digital currencies (CBDCs) and are studying how the underlying technology could be used.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X13EL&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL2N2W922S&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>China&#8217;s digital yuan project is the most advanced among large economies, though central banks from the&nbsp;euro zone&nbsp;to the United States are in varying stages of research into CBDCs.</p>



<p>Last year, Nigeria&#8217;s central bank introduced an eNaira for use by ordinary citizens.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2RL4J4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>South Africa has conducted small-scale experiments with a wholesale CBDC and participated in a cross-border pilot with the central banks of Malaysia, Australia and Singapore.</p>



<p>The next stage is for regulators to test the digital rand at a bigger scale and develop rules for its use.</p>



<p>&#8220;We&#8217;re still learning, we&#8217;re still experimenting,&#8221; Naidoo said.</p>



<p>Meanwhile, Naidoo said the South&nbsp;African&nbsp;Reserve Bank wants regulation of crypto assets to prevent theft, money laundering and undermining of monetary policy and hopes it will be in place in the next 15 months.</p>



<p>&#8220;If crypto assets were to become a very ubiquitous currency, you could undermine the authority of the central bank,&#8221; he said.</p>



<p>(Reporting by Rachel Savage and Promit Mukherjee; Editing by Lisa Shumaker)</p>


South African Economy As Inflation Rate Rises For First Time In 2017

S.African central bank eyes digital rand to cut cross-border payment costs


<p>By Vuyani Ndaba</p>



<p>JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Reserve Bank is set to make its first 50 basis point hike to its repo rate in more than six years next week, taking it to 4.75%, to prevent potential second-round effects from higher consumer prices, a Reuters poll forecast on Friday.</p>



<p>Despite a cost of living crisis expected to have a severe impact on growth, 16 of 24 economists in the May 9-12 survey concluded the central bank would raise its repo rate by 50 basis points (bps) on May 19. The remaining eight opted for a 25 bps increase.</p>



<p>Last month only four of 17 economists thought a 50 bps hike was likely, against 13 who said 25 basis points.</p>



<p>A median of 16 economists showed an almost 60% probability the SARB would hike interest rates by 50 bps this month.</p>



<p>&#8220;We expect the SARB to step up the pace of policy normalisation in its May MPC meeting, delivering a 50 bps rate hike to 4.75%,&#8221; said Jeffrey Schultz, economist at BNP Paribas.</p>



<p>The Reserve Bank has not used 50 bps hikes in its policy toolkit since January 2016. It was the norm prior to the 2008/09 global recession.</p>



<p>Still, the Bank was expected to return to 25 bps hikes in every quarter until 6.00% was reached in the third quarter of next year.</p>



<p>Schultz added there were growing concerns over materialising upside risks to inflation &#8211; both core and non-core &#8211; a weaker currency and what was likely to be a faster frontloading of U.S. Federal Reserve hikes over coming months.</p>



<p>The poll suggested inflation would average 5.9% this year and slow to 4.7% next year, slightly higher than last month&#8217;s 5.7% and 4.6% respective forecasts.</p>



<p>Any further upward revision could breach the SARB&#8217;s 3-6% upper comfort level for 2022.</p>



<p>Some governments have responded to rising prices by cutting fuel taxes or granting subsidies.</p>



<p>In South Africa, the temporary cut to the fuel levy by 1.50 rand ($0.0924) per litre of petrol will come to an end late this month, setting the scene for much higher fuel price increases at gas stations next month.</p>



<p>Independent economist Elize Kruger said the sheer extent of such a hefty fuel price increase in a single month would result in a higher probability of a severe indirect negative effect on prices (second round effects) as every product that has to be transported would become more expensive.</p>



<p>&#8220;Workers will demand higher wages to compensate for higher living costs, also adding to the production costs in the economy and in this process prices in most of the CPI basket will show increases. The SARB would be very uncomfortable if second round effects start to appear in a meaningful way,&#8221; said Kruger.</p>



<p>South African economic growth was expected to slow to 1.8% this year from a 4.9% expansion last year and stay at that rate across the forecast horizon.</p>



<p>Ten of 14 economists expected a &#8220;severe impact&#8221; from the cost of living crisis on economic growth this year, while the other four suggested a &#8220;mild effect&#8221; owing to the Reserve Bank&#8217;s credibility in monetary policy.</p>



<p>Apart from rising prices across the world, South Africans have had to deal with rotational power disruptions that constrain growth in Africa&#8217;s most developed economy and undermine job creation. ($1 = 16.2372 rand)</p>



<p>(Reporting by Vuyani Ndaba; Editing by Alex Richardson)</p>


South African Reserve Bank Rate Announcement Ahead Of Stimulus Plan

S.Africa’s central bank to hike by 50bps on May 19 for first time since 2016

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<p>The South African Reserve Bank  kept borrowing costs unchanged, in a bid to support economic recovery and growth. The repo rate has been left at 3.5 per cent for the sixth straight meeting, in line with market expectations. Isaah Mhlanga, Chief Economist at Alexander Forbes joins CNBC Africa for more.</p>


Sarb keeps rates on hold in line with market expectations

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<p>There’s much anticipation about this afternoon’s monetary policy announcement with consensus showing that there is unlikely to be changes to borrowing costs. The rand has been slightly stronger this morning ahead of the interest rate announcement. which may be a good sign. Joining CNBC Africa for more is Miyelani Maluleke, Economist at Absa Corporate and Investment Banking and Siphamandla Mkhwanazi, Economist at FNB.</p>


Economists expect Reserve Bank to keep repo rate unchanged

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<p>Is it time to re-imagine South Africa&#8217;s inflation targeting regime? CNBC Africa&#8217;s Godfrey Mutizwa asked Intellidex Head of Research Peter Attard Montalto if it&#8217;s time to shake things up.</p>


Is it time for the SARB to broaden its mandate beyond inflation targeting?

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<p>South Africa’s Central Bank has kept interests rates on hold, as it continues to support economic recovery. Although the bank expects inflation to be contained this year, it says it stands ready to act, if it goes beyond unwelcome levels. Joining CNBC Africa for that conversation is Nthabiseng Moleko, Development Economist at the University of Stellenbosch Business School and Annabel Bishop, Chief Economist at Investec.</p>


Economists react to SARB’s interest rate decision

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<p>The South African Reserve Bank&#8217;s Monetary Policy Committee has kept the repo rate steady at 3.5 per cent. This, as the economy is still exceptionally weak. The Central Bank says that one of the risks to the economic growth outlook is the slow rollout of Covid-19 vaccines. Herman van Papendorp, Head of Investment Research &#038; Asset Allocation at Momentum Investments joins CNBC Africa for more.</p>


SARB keeps rates unchanged

SARB keeps rates unchanged, here’s what that means for the economy

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<p>Reserve bank governor Lesetja Kganyago, will deliver an address on the decisions of the bank’s Monetary Policy Committee. The jury is still out on whether they will make any changes. Just yesterday CPI for February came in lower at 2.9 per cent. Investec Chief Economist, Annabel Bishop joins CNBC Africa for more.</p>


Bell

MPC Meeting: What will the Sarb decide?

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<p>&nbsp;</p>
<p>The Reserve Bank’s Monetary Policy Committee is meeting tomorrow, higher electricity tariffs and inflation tariffs are said to be on the agenda. But will they make any changes?</p>


ND24

Why this economist thinks the SARB should widen its mandate to tackle socio-economic challenges

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<p>The steel industry has welcomed the South African Reserve Bank’s decision to leave the repo rate unchanged, which it believes will relieve pressures on consumers. This is as Covid-19 slashed production and sales forecasts for the manufacturing industry. Joining CNBC Africa for insight into the sector is Chifipa Mhango, Chief Economist at the Steel and Engineering Industries Federation of Southern Africa.</p>


What the low-interest rate environment means for SA’s steal industry

What the low-interest rate environment means for SA’s steel industry

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<p>Keeping interest rates unchanged, South Africa&#8217;s Reserve Bank Governor Lesetja Kganyago said that monetary policy continues to be accommodative; adding that it continues to support economic growth. He added, however, that the country needs to cultivate prudent economic conditions and structural reforms. Joining CNBC Africa for that conversation is Annabel Bishop, Chief Economist at Investec and Johann Els, Chief Economist at Old Mutual Investment Group.</p>


Economists unpack Kganyago’s rate decision & economic outlook for 2021

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<p>The South African Reserve Bank has done a considerable amount of heavy lifting. This year alone, the repo rate was cut by 300 basis points. For many, it is no surprise that the bank decided to keep the rate unchanged, in its latest MPC meeting. In addition, the Reserve Bank has changed its forecast for GDP contraction in 2020, to 8.2 per cent. Investec Chief Economist, Annabel Bishop joins CNBC Africa for more.</p>


South African Reserve Bank

Post-MPC Analysis: Kganyago keeps rates on hold

SARB keeps repo rate unchanged at 8.25% (full speech)

Post-Analysis: SARB keeps rates on hold

Kganyago keeps repo rate unchanged at 8.25% (full speech)

Kganyago keeps repo rate unchanged at 8.25% (full speech)

S.African central bank eyes digital rand to cut cross-border payment costs

S.Africa’s central bank to hike by 50bps on May 19 for first time since 2016

Sarb keeps rates on hold in line with market expectations

Economists expect Reserve Bank to keep repo rate unchanged

Is it time for the SARB to broaden its mandate beyond inflation targeting?

Economists react to SARB’s interest rate decision

SARB keeps rates unchanged, here’s what that means for the economy

MPC Meeting: What will the Sarb decide?

Why this economist thinks the SARB should widen its mandate to tackle socio-economic challenges

What the low-interest rate environment means for SA’s steel industry

Economists unpack Kganyago’s rate decision & economic outlook for 2021

SARB forecasts GDP contraction of 8.2% in 2020

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South African Reserve Bank

Post-MPC Analysis: Kganyago keeps rates on hold

SARB keeps repo rate unchanged at 8.25% (full speech)

Post-Analysis: SARB keeps rates on hold

Kganyago keeps repo rate unchanged at 8.25% (full speech)

Kganyago keeps repo rate unchanged at 8.25% (full speech)

S.African central bank eyes digital rand to cut cross-border payment costs

S.Africa’s central bank to hike by 50bps on May 19 for first time since 2016

Sarb keeps rates on hold in line with market expectations

Economists expect Reserve Bank to keep repo rate unchanged

Is it time for the SARB to broaden its mandate beyond inflation targeting?

Economists react to SARB’s interest rate decision

SARB keeps rates unchanged, here’s what that means for the economy

MPC Meeting: What will the Sarb decide?

Why this economist thinks the SARB should widen its mandate to tackle socio-economic challenges

What the low-interest rate environment means for SA’s steel industry

Economists unpack Kganyago’s rate decision & economic outlook for 2021

SARB forecasts GDP contraction of 8.2% in 2020

News Tips

Advertise With Us

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