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☆ Fed's Bostic sees no 'urgency' to raise rates again, but cuts a long way off
▼ + stars: | 2023-10-03 | by ( ) www.reuters.com time to read: +3 min

FILE PHOTO:President and chief executive officer of the Federal Reserve Bank of Atlanta, Raphael Bostic speaks at the South African Reserve Bank's Biennial Conference in the Cape Town International Convention Centre, South Africa, August 31, 2023. "I don't think there is an urgency for us to do anything more ... I think that is the appropriate thing to do for a long time," Bostic said. The current policy rate "is starting to slow the economy down. Recent data showing a decline in the underlying pace of inflation is expected by many investors to hold the benchmark policy rate steady.

Persons: Raphael Bostic, Esa Alexander, Bostic, Let's, Howard Schneider, Andrew Heavens, Will Dunham Organizations: Federal Reserve Bank of Atlanta, South African, Bank's, Cape Town International Convention Centre, REUTERS, Rights, Federal Reserve, Atlanta Federal Reserve, Metro Atlanta Chamber, Federal, Fed, Thomson Locations: South Africa, Atlanta

☆ Global central banks unite in "higher for longer" credo
▼ + stars: | 2023-09-21 | by ( Mark John | ) www.reuters.com time to read: +6 min

The so-called "higher for longer" mantra is now the official stance of the U.S. Federal Reserve, European Central Bank and the Bank of England, as well as being echoed by monetary policy-makers from Oslo to Tapei. U.S. Federal Reserve policymakers had a similar message on Wednesday. Turkey's central bank confirmed its hawkish turn while in Asia, Taiwan's central bank flagged continued tight policy. Reuters Graphics"TIPPING POINT"Belgian central bank chief and ECB board member Pierre Wunsch - an early voice urging tougher central bank action to counter inflation from end-2021 - said on Thursday that monetary policy was now at the right level. That said, the prospect that global interest rates are pretty close to peak will be of huge relief to emerging economies suffering from heavy debt servicing loads.

Persons: Jerome Powell, Christine Lagarde, Kazuo Ueda, Ann, BoE, Andrew Bailey, Pierre Wunsch, Wunsch, COVID lockdowns, Jerome, Powell, Krishna Guha, Howard Schneider, Balazs Koranyi, Catherine Evans Organizations: European Central Bank, Bank of Japan, Kansas City Federal, REUTERS, U.S . Federal Reserve, Bank of England, U.S . Federal, Swiss National Bank, South African Reserve Bank, People's Bank of, Reuters, ECB, Reuters Global Markets, Economics, Sterling, Swiss, United, Thomson Locations: Jackson Hole , Wyoming, U.S, Central, Oslo, Tapei, Europe, Norway, Sweden, Asia, People's Bank of China, Belgian, United States, Ukraine, Washington, Frankfurt, London, Stockholm, Zurich, Ankara

☆ Tencent investors Naspers and Prosus announce abrupt departure of CEO Bob van Dijk
▼ + stars: | 2023-09-18 | by ( Arabile Gumede | ) www.cnbc.com time to read: +2 min

Bob van Dijk Bloomberg | Bloomberg | Getty ImagesThe immediate and mutually agreed departure of Naspers and Prosus CEO Bob van Dijk underscores a complicated few years for a firm seen riding on the coattails of its holdings in Chinese tech giant, Tencent . The South African Reserve Bank gave Naspers the greenlight to begin buying back more of its shares from Prosus. 'Getting rid' of the cross holdingPrior to the current structure, Naspers (headquartered in South Africa) owned a third of Chinese internet giant Tencent Holdings. Van Dijk oversaw the decision to split off its holding of Tencent and other tech holdings into Prosus in 2019. But that crossholding offered little value to investors with van Dijk telling Reuters at the time: "They [shareholders] said we don't like this cross holding, it creates complexity.

Persons: Bob van Dijk, Naspers, Koos, Van Dijk, Prosus, crossholding, van Dijk, We've, we're, Erwin Tu, Tu, Goldman Sachs Organizations: Bob van Dijk Bloomberg, Bloomberg, Getty, South, Naspers, South African Reserve Bank, Tencent Holdings, Johannesburg Stock Exchange, Euronext, Reuters, Citi, SoftBank Group Locations: Dutch, Prosus, South Africa, Johannesburg, Naspers

☆ Fed's Bostic says U.S. interest rates are high enough
▼ + stars: | 2023-08-31 | by ( ) www.reuters.com time to read: +3 min

U.S. Atlanta Federal Reserve Bank President Raphael Bostic speaks to reporters at the National Association of Business Economics' annual policy meeting in Washington, U.S. March 21, 2022. "I feel policy is appropriately restrictive," Bostic said in remarks prepared for delivery to the South African Reserve Bank Biennial Conference in Cape Town, South Africa. "We should be cautious and patient and let the restrictive policy continue to influence the economy, lest we risk tightening too much and inflicting unnecessary economic pain." U.S. central bankers are widely expected to leave the Fed's policy rate in the current range of 5.25%-5.5% when they next meet in a little less than three weeks. Bostic has been in the minority at the Fed, cautioning against over-tightening policy and needlessly hurting jobs and livelihoods.

Persons: Raphael Bostic, Ann Saphir, Bostic, Bostic's, Richard Chang Organizations: Atlanta Federal Reserve Bank, National Association of Business Economics, REUTERS, South African Reserve Bank Biennial, U.S, Thomson Locations: Washington , U.S, Cape Town , South Africa, U.S

The South African Reserve Bank's (SARB) monetary policy committee (MPC) kept rates at 8.25% as inflation forecasts came in lower than previous ones and economic conditions improved. Kganyago said future rate decisions would continue to depend on economic data and risks to the inflation outlook. The bank expects inflation to fall back to the midpoint of the target range sustainably only by the third quarter of 2025. Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said in a note that rate cuts were likely to materialise only early next year. "The split vote suggests that inflation concerns continue to linger and it is likely to take some time before a majority on the MPC are in favour of rate cuts," Tuvey said.

Persons: Lesetja Kganyago, Kganyago, Jason Tuvey, Tuvey, Kuben Naidoo, Nellie Peyton, Tannur Anders, Kopano, Anait Miridzhanian, Promit Mukherjee, Rachel Savage, Alexander Winning, Olivia Kumwenda, Frances Kerry Organizations: South, Reuters Graphics Reuters, Capital Economics, MPC, Thomson Locations: PRETORIA

[1/3] One of Tiger Brands' most popular beverage products, Oros, is seen during production at a manufacturing facility in Germiston, South Africa November 17, 2022. This investment, sometimes at the cost of essential capital expenditure, will eventually be passed onto consumers, making food prices higher for longer, food companies, economists and lobby groups told Reuters. It comes at a time when South Africa is already struggling with acute unemployment, 14-year high interest rates and ballooning inflation and complicates efforts of the South African Reserve Bank (SARB) to ease interest rate hikes. Poultry producer Astral (ARLJ.J), diversified food producers AVI (AVIJ.J) and RCL Foods (RCLJ.J) have indicated in their recent earnings statements the mitigating measures would eventually translate into higher food prices. The listed food producers have collectively lost almost 15% in their market value since the beginning of the year.

Persons: James Oatway, Derek McKernan, Kobus, Pieter Taljaard, Thomas Funke, Charles Rossouw, Rosle, Cloete, Gertenbach, Tannur Anders, Anait, Promit Mukherjee, David Evans Organizations: Tiger Brands, REUTERS, Reuters, South African Reserve Bank, Reuters Graphics, Premier, RCL, Grain SA, Cane Growers ' Association, Food, Agricultural, Thomson Locations: Germiston, South Africa, JOHANNESBURG, Africa

☆ Inflation is a bigger risk than over-tightening, says central bank governor
▼ + stars: | 2023-06-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInflation is a bigger risk than over-tightening, says central bank governorSouth African Reserve Bank Governor Lesetja Kganyago says it's better to go too far than not far enough on rates.

Persons: Lesetja Kganyago, it's Organizations: South African Reserve Bank

JOHANNESBURG, April 19 (Reuters) - South African inflation rose for the second month in a row in March to 7.1% year on year, driven by a steep increase in food prices, data showed on Wednesday. Economists said the pickup in inflation, from 7.0% in February, meant the central bank would probably raise interest rates again next month. The South African Reserve Bank (SARB) has hiked interest rates nine times in a row since November 2021 to try to tame inflation. First National Bank senior economist Koketso Mano said it appeared that power constraints were exacerbating local food inflation. Consumer inflation rose to 1.0% month on month in March from 0.7% in February.

☆ South African rand gains as dollar slips; inflation in focus
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

JOHANNESBURG, April 17 (Reuters) - The South African rand gained against the dollar in early trade on Monday as the U.S. currency slipped on global markets , with local investors' focus on inflation data this week. At 0700 GMT, the rand traded at 18.0275 against the dollar, about 0.2% stronger than its closing level on Friday. There are no major South African economic data releases on Monday, so the rand is likely to track dollar moves. Analysts are looking to the March consumer price index (CPI) to gauge the success of the South African Reserve Bank's interest rate hikes in taming price pressures. The worst power cuts on record mean the prospects for growth in Africa's most industrialised economy this year are bleak.

☆ South Africa targets $111 billion investment goal in tough investor climate
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +3 min

[1/2] South Africa's President Cyril Ramaphosa looks on as he delivers the opening address at the 5th Investment Conference to showcase opportunities available in the country to local and international companies, in Sandton, South Africa, April 13, 2023. Jairus Mmutle/Government Communication Information System (GCIS)/Handout via REUTERSJOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. "The way we see it for the future of South Africa, international investment is so important and these challenges make it difficult for us to position the potential of South Africa as an attractive investment destination while there is uncertainty on when reforms will be implemented," Brown said. South Africa has experienced its worst power cuts on record, leaving businesses and households in the dark for up to 10 hours daily. The South African Reserve Bank estimates these blackouts have shaved off at least 2 percentage points from growth.

☆ South Africa central bank governor sees upside risk to inflation outlook
▼ + stars: | 2023-04-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouth Africa central bank governor sees upside risk to inflation outlookSouth African Reserve Bank Governor Lesetja Kganyago discusses the central bank's recent surprise move to hike interest rates and concerns about movements in the currency.

☆ South Africa fights to keep phone networks up as lights go out
▼ + stars: | 2023-04-05 | by ( Nqobile Dludla | ) www.reuters.com time to read: +8 min

A bank of expensive backup batteries, theft-proofed within a block of concrete. "Our costs have gone through the roof," lamented Sitho Mdlalose, managing director of Vodacom South Africa (VODJ.J). President Cyril Ramaphosa in February declared a national state of disaster, calling the crisis an existential threat to South Africa's social fabric. While most network towers in South Africa are equipped with a battery for backup power, more advanced systems are less common. That risks delaying South Africa's pivot to the digital economy and could leave rural areas, which already suffer from sparse coverage, lagging even further behind.

☆ Bitcoin is poised to blow up Africa's $86 billion banking system
▼ + stars: | 2023-03-26 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +16 min

Then there's mobile money, which has been around since the early 2000s. Africa's mobile money transactions rose 39% to more than $700 billion in 2021, according to data from the GSM Association, a non-profit representing mobile network operators worldwide. That cash network was extraordinarily difficult and expensive to build, which is why there aren't a lot of direct competitors. Bitnob is SMS-based and piggybacks on the mobile money system, making it easier for people to send money directly into bank accounts and mobile money wallets in African countries. "We're able to settle into bank accounts or mobile money accounts, without the recipients having to interact with bitcoin themselves," Parah tells CNBC.

☆ South Africa moves to regulate crypto assets
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

JOHANNESBURG, Oct 19 (Reuters) - South Africa's financial watchdog has classified cryptocurrency assets as financial products, a notice in the government gazette said on Wednesday, enabling them to be regulated. Regulations that the authorities have said they planned to introduce include applying foreign exchange controls and licensing crypto trading companies. Crypto assets are not issued by a central bank, but are capable of being traded, transferred or stored electronically. He added the SARB wanted regulation of crypto assets to prevent theft, money laundering and undermining of monetary policy because an ubiquitous cryptocurrency could weaken the authority of the central bank. He added the declaration would apply to crypto trading platforms, as well as those that provide advice or intermediary services for the buyers and sellers of digital financial assets.

☆ Difficult to tell if close to the end of the rate hiking cycle, South African Reserve Bank governor says
▼ + stars: | 2022-10-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDifficult to tell if close to the end of the rate hiking cycle, South African Reserve Bank governor saysLesetja Kganyago, Governor of the South African Reserve Bank, discusses the outlook for monetary policy over the coming months and power problems in the country.

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