Roodt said that a fifty base point hike in interest rates in response to the situation is likely and that the South African economy is probably not going to grow this year.
South Africa’s alleged supply of arms to Russia in contravention of global sanctions has massive negative implications, according to the country’s foremost political scientist RW Johnson.
South Africa has been accused by the US Ambassador to the country of supplying breaking the global arms embargo and supplying weapons and ammunition to Russia.
The rand weakened to its worst level in three years and yields on local-currency bonds rose as South Africa’s continuing energy shortage and deteriorating economic outlook intensify concern among investors.
South Africa has been placed on a global financial watchdog’s so-called gray list – scarring international reputations.
Alec Hogg writes on the prevailing Rand’s slide, SA’s rationed electricity and the joint naval exercise with Russia and China.
The US Dollar shorts have become the favourite trade as Fed is seen to slow down hikes – showing “the hottest macro short now”.
A second five-year term for Ramaphosa at the helm of the ANC should reassure investors that his administration will continue with reforms to revive the stuttering economy.
The question Mike Schüssler probably gets asked the most as an economist is; “where will the rand be by Christmas or next year this time”.
There’s a reminder in the latest update from stalwart Remgro, acknowledged as among the best performing shares over the longer-term.