Aurelia Butler

PRETORIA – The South African Reserve Bank (SARB) has announced a reduction in the repurchase rate by 25 basis points to 7.75%, effective from November 22, 2024, as conveyed in a statement by the Governor, Lesetja Kganyago. This decision, taken unanimously by the Monetary Policy Committee (MPC), comes amidst a complex global economic landscape characterized by a stronger dollar, rising interest rates, and new inflationary pressures.The MPC noted that South Africa’s growth recovery is gaining traction, with positive indicators such as a decrease in unemployment and a potential boost from the newly implemented Two-Pot pension system. Despite mixed data outcomes and subdued manufacturing figures, the mining sector showed strength and job gains were broad-based. The Committee forecasts growth to reach 2% by 2027.Consumer price inflation in South Africa has dipped below the target range, registering at 2.8% in October. This is attributed to a stronger exchange rate and lower oil prices compared to the previous year. Inflation is expected to remain below 4% until mid-2025, with a modest increase projected thereafter due to higher electricity prices.The MPC anticipates that inflation expectations will moderate further, aligning closer to the midpoint objective over the forecast horizon. The risks to the inflation outlook are considered balanced, with potential medium-term uncertainties such as higher food, electricity, water, insurance premiums, and wage settlements.The committee’s decision to lower the policy rate aligns with the goal of achieving the inflation target while maintaining a cautious approach due to the unpredictable global interest rates and the recent depreciation of the rand. Although further easing of rates is forecasted, the MPC emphasizes that future decisions will be made on a case-by-case basis, responsive to data developments and sensitive to the balance of risks.The SARB’s commitment to delivering low and stable inflation, coupled with structural reforms aimed at supporting growth capacity and rebuilding fiscal and monetary policy space, remains pivotal in the face of external challenges. The MPC also acknowledged recent positive credit rating outlooks and the potential for structural reforms to bolster long-term growth prospects.This announcement follows similar rate cuts by the European Central Bank in October, and by the Bank of England and the US Federal Reserve in November. The MPC’s decision is based on a press release statement, which provides insight into the economic conditions and policy considerations guiding the bank’s actions.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Economists had expected the central bank to lower the repo rate by 25 bps, the same size of cut as in September.Annual inflation slowed sharply to 2.8% in October, its lowest level in over four years, dropping just below the central bank’s 3% to 6% target range. More

Ruto said he had also directed the cancellation of a 30-year, $736-million public-private partnership deal the energy ministry had signed with a unit of the Adani Group last month to construct power transmission lines.””I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement,” Ruto said in his state of the nation address, attributing the decision to “new information provided by investigative agencies and partner nations”. U.S. authorities said on Wednesday that Gautam Adani, one of the world’s richest people, and seven other defendants agreed to pay about $265 million in bribes to Indian government officials.Adani Group denied the allegations and said in a statement that it would seek “all possible legal recourse”. Earlier on Thursday, Energy Minister Opiyo Wandayi had said there was no bribery or corruption involved in the award of the transmission lines contract. More

VATICAN CITY – In a decisive move to address the looming financial challenges of the Vatican’s Pension Fund, Pope Francis has appointed Cardinal Kevin Farrell as the Sole Administrator. The appointment, announced in a letter to the College of Cardinals on November 19, 2024, underscores the urgent need for structural reforms to ensure the fund’s sustainability.The Pope’s letter, released by the Holy See Press Office, conveys the gravity of the pension system’s prospective imbalance, as identified by recent analyses from independent experts. The current system, according to the Pope, fails to guarantee the fulfillment of future pension obligations, necessitating immediate action.Cardinal Farrell’s new role as Sole Administrator is part of a broader commitment to economic reform within the Vatican. The Pope expressed his confidence in Farrell’s leadership, stressing the importance of this new phase for the stability and well-being of the community.The management of the Pension Fund has been a longstanding concern, with the moral responsibility to provide fair and dignified pensions to employees of the Holy See and Vatican City State being a key motivator for successive Pontiffs. Addressing this issue, however, will require difficult decisions and sacrifices from all involved.Pope Francis called for unity and collaboration among the Roman Curia and institutions connected to the Holy See, emphasizing the need for urgent structural measures to achieve sustainability. Justice and equity across generations must remain a guiding principle in this endeavor.In his plea for prayer and support, the Pope highlighted the collective responsibility of his collaborators to facilitate this necessary path of change. The appointment of Cardinal Farrell marks a significant step towards confronting the challenges facing the Vatican’s pension system.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

BRUSSELS – New car registrations in the European Union saw a marginal increase of 1.1% in October 2024, with Spain and Germany experiencing growth while France and Italy faced declines. The European Automobile Manufacturers Association ( ACEA (BIT:ACE)) reported these figures, indicating a mixed performance across major markets.Spain led the recovery with a 7.2% increase in new car registrations, and Germany followed with a 6% rise after three consecutive months of falling numbers. Contrasting these gains, France saw an 11.1% decrease, and Italy’s registrations dropped by 9.1%.Despite the modest overall growth in October, the year-to-date figures for new car registrations across the EU remained relatively stable with a 0.7% increase, totaling 8.9 million units. Spain (+4.9%) and Italy (+0.9%) reported positive performance over the ten months, whereas France and Germany experienced declines of 2.7% and 0.4%, respectively.Focusing on the electric vehicle market, battery-electric cars maintained a steady market share of 14.4% in October, but saw a 4.9% decrease in year-to-date volumes, with market share falling to 13.2% from 14% the previous year. Germany’s significant 26.6% drop in battery-electric car registrations was a major factor in this decline.Plug-in hybrid registrations also decreased by 7.2% in October, with market share dipping to 7.7%, a 0.7 percentage point decrease from the prior year. France (-26.9%) and Italy (-24.9%) recorded considerable declines in this category.On a positive note, registrations of hybrid-electric vehicles surged by 17.5% in October, with their market share climbing to 33.3%, surpassing petrol car registrations for the second consecutive month.Petrol car sales, on the other hand, fell by 6.8% overall in October, with France experiencing the largest drop of 32.7%. Diesel car registrations also declined, resulting in a market share of 10.9%.The ACEA’s report provides a snapshot of the current state of the European car market, reflecting a complex landscape of growth and decline across different segments and countries.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More