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SA’s annual headline consumer inflation at 4,0% in March from 3,9% in February was lower than the markets expectations. The lower rate relative to forecasts stemmed from lower-than-expected food prices.
While the SA Reserve Bank’s Monetary Policy Committee (MPC) kept interest rates unchanged last week – as expected – the country must prepare itself for a resumption in the rate hiking cycle, says Izak Odendaal, Investment Strategist at Old Mutual Wealth.
The South African Reserve Bank (SARB) kept interest rates on hold at 5.75% today, in line with our in-house view and the unanimous prediction among the 26 analysts polled by Bloomberg.
South Africa has a relatively heavy regulation burden compared to most developed countries. Rising wages, poverty, inequalities, high unemployment and a shortage of qualified labour are challenges facing SA.
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