Economy / General

2021 represents a new start despite the second wave

Following the South African Reserve Bank’s (SARB) decision to keep interest rates unchanged, FNB will maintain its prime lending rate at 7% and will review its position after the next SARB Monetary Policy Committee meeting in March 2021.

Low rates remain positive for SMEs heading into 2021

The South African Reserve Bank’s decision to keep the repo rate unchanged at a record low of 3.5% and prime lending rate at 7% eases pressure on the ailing economy and debt burden for businesses and consumers.

Consumer price inflation down in December despite higher food prices

December Consumer Price Index

Consumer price inflation surprised marginally; we were expecting a 3% y/y print, while inflation rose 3.1% in December from 3.2% in November. Food and non-alcoholic beverages, housing utilities as well as miscellaneous goods and services were the main contributors to the December print.