Investments

Rate cuts look less likely as inflation remains sticky

Financial and risk advisers who were hoping for better economic growth or interest rate cuts to lift the mood at upcoming client interactions will be sorely disappointed. As the 29 May 2024 National Elections loom, all you can truthfully report to clients is another downward revision in South Africa’s GDP growth forecast. And as for interest rates, you could hint at a possible pre-election windfall; but deep down you know the South African Reserve Bank (SARB) has been tough on inflation, and is unlikely to cut yet.

Investing in turbulent times

In South Africa and across the world this year, millions of people will be voting in more than 64 countries. Geopolitical tensions, especially in the Middle East and between the United States and China, are escalating.

The more things change, the more they stay the same

Investors must watch out for tail risks from elevated inflation and interest rates, says Melville Douglas

Tail risks from elevated interest and inflation rates and a very uncertain geopolitical backdrop are lurking in the shadows and could put a dampener on hopes for a quick equity market recovery.