Arab Today, arab today south africa central bank slashes growth forecast holds rates
Last Updated : GMT 05:24:00
Arab Today, arab today
Arab Today, arab today

South Africa central bank slashes growth forecast, holds rates

Arab Today, arab today

Arab Today, arab today South Africa central bank slashes growth forecast, holds rates

Pretoria - AFP

South Africa's Reserve Bank slashed its growth forecast for this year and kept rates on hold Thursday, warning a prolonged mining strike could have a further "potentially devastating" impact on the economy. Painting a bleak picture of the state of Africa's most developed economy, Gill Marcus said growth was expected to slow to 2.1 percent this year, versus a previous forecast of 2.6 percent. "Despite a more favourable global growth environment, the domestic economic growth outlook has deteriorated markedly," said Marcus. She zeroed-in on a strike that has kept an estimated 80,000 platinum miners above ground for the last four months, refusing to return to work until they get a significant pay hike. "There is still no end in sight to the protracted strike in the platinum sector, and the economic and social costs are escalating and are potentially devastating," said Marcus. She also expressed concern that any bumper wage deal in the sector could set the tone for other salary negotiations -- fuelling inflation that is already above the six percent upper edge of the bank's target rate. At an annualised rate consumer prices rose 6.1 percent in April thanks to a rise in the cost of basic food items, housing and transport. That poses a tough challenge for the bank. It needs to curb inflation -- which has hit the poor disproportionately hard -- but raising interest rates risks hampering growth. With one in four South African workers without a job and millions more giving up the hunt, the country sees frequent social unrest. - 'Tough times' - It's obviously not good for the consumer to be staring down the barrel of 6.1 percent of inflation," said Ryan Wibberley, head of equity dealing in emerging markets at Investec Asset Management "For the average guy on the street, you know these are tough times," he said, speaking from Cape Town. Marcus said members of the monetary policy committee had decided to keep rates on hold for now, with five members voting in favour of a freeze and two voting for a rise. "Monetary policy faces an increasingly challenging scenario," said Marcus. High inflation and a weak rand had forced the bank to raise rates by half a percentage point in January to 5.5 percent. The decision not to raise rates this time round had been expected. But Marcus cautioned "the committee continues to hold the view that we are in a rising interest rate cycle." Nedbank chief economist Dennis Dykes predicted the bank's interest rate hikes will be a "very slow climb instead of a quick one." "Of course if the rand continues to firm they'll hold off," he said, "if the rand gets weaker and they get more worried about inflation, they'll push the button." Dykes said the platinum strikes have had a "horrible" impact on the country's economic outlook. "We thought we'd get over two and a half percent this year, yet the platinum strike has wiped out any base effects you would have normally seen," he said. "Every year we say it's abnormal factors pushing us lower, but it's starting to look normal," he said, "it's a big ideological struggle and it's going to have a very painful outcome. It's just not economically viable, there's not going to be a miracle."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today south africa central bank slashes growth forecast holds rates Arab Today, arab today south africa central bank slashes growth forecast holds rates

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today south africa central bank slashes growth forecast holds rates Arab Today, arab today south africa central bank slashes growth forecast holds rates

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday