Interest rates: the Sarb will not bow to political pressure
A 200 basis point cut in the repo rate will lead to the rand plunging by between 12% and 15%, putting upward pressure on inflation through more expensive imports.
Conventional wisdom says that living expenses rise uniformly with inflation, so many financial plans are based simply on that. But analysing the spending patterns of retirees shows us that the data tells a different story.
Read moreA 200 basis point cut in the repo rate will lead to the rand plunging by between 12% and 15%, putting upward pressure on inflation through more expensive imports.
Any stupid remark or action could lead to a further downgrade in South Africa’s credit rating and higher 10-year government bond yields.
The country is in a position similar to the one it was in before the apartheid system collapsed.