FANews
FANews
RELATED CATEGORIES
Category Economy
SUB CATEGORIES General |  Budget 2015 |  Budget 2016 |  Budget 2017 |  Budget 2018 |  Budget 2019 | 

MPC SNAP: Dovish statement suggests rate cut is on the cards

23 May 2019 Nazmeera Moola, Head of Investments, Investec Asset Management

Although the SA Reserve Bank decided to keep interest rates on hold at their May 2019 MPC meeting, the statement was decidedly more dovish than their March statement. The logical conclusion is that the SARB is likely to cut interest rates by 25 basis points at their July MPC meeting – barring any major rand weakness in the intervening period.

The Bank’s inflation forecasts fell by 20-30 basis points over each of the next three years. This was despite higher oil price forecasts. Therefore the decline is being driven by a combination of lower food prices and lower underlying inflation in South Africa.

Their growth forecasts were unchanged, but they acknowledge downside risks given the expected contraction in first quarter GDP data, which will be published in early June.

Quick Polls

QUESTION

What more can financial planners do to make retirement for clients a reality?

ANSWER

The value of the service or product a client receives will determine if they ultimately will achieve their goals or not
Most South Africans are simply not contributing enough towards their retirement savings
Ensure that investments are well diversified to achieve long-term goals to soften the blow of short-term fluctuations
A E fanews magazine
FAnews June 2019 Get the latest issue of FAnews

This month's headlines

New realities of customer engagement
Success in the new CPD cycle
Shedding light on the reinstatement clause
Resisting the winds of change
Claim statistics tell the story
Growth assets for living annuity investors
Subscribe now