Die ekonomie minuut

This week, the economic news was dominated by the Reserve Bank's repo rate decision. The rate was increased by 25 basis points to 4% yesterday. The prime rate is now 7.5%. But there were also other important indicators to report: PPI, inflation expectations, and the take-home pay index.

Die Reserwebank moet vandag die repokoers verhoog. Hulle het eintlik nie ʼn keuse nie. Inflasie het regdeur die afgelope jaar gestyg en het in Desembermaand op 5,9% gestaan.Daarby gaan rentekoerse in die VSA hierdie jaar styg en ons wil graag die verskil in opbrengskoerse tussen Suid-Afrikaanse en Amerikaanse staatskuld behou want dit ondersteun die binnelandse kapitaalmark en die rand.

The Reserve Bank has to increase the repo rate today. They actually have no choice. Inflation has risen over the past year and stood at 5.9% in December. In addition, interest rates in the US will rise this year and we would like to maintain the difference in yields between South African and US government bonds because it supports the domestic capital market and the rand.

In hierdie weke voor die President se SONA en die begrotingsrede haal die groot vraagstukke die media. Oor die naweek het die President gesê dat daar ondersoek ingestel moet word na die lewensvatbaarheid en bekostigbaarheid van ‘n vorm van inkomste ondersteuning vir werklose en arm mense. Daar is ook twee groot studies gedoen wat ‘n klomp opsies gee. Die groot vrae bly, wat is genoeg om om te help, en kan die staatskas dit bekostig?

In these weeks before the President's SONA and the budget speech, the big issues are in the media. Over the weekend, the President said that the viability and affordability of some form of income support for unemployed and poor people should be investigated. There have also been two major studies that offer a lot of options. The big questions remain, what is enough to help, and can the treasury afford it?

Na die styging in die inflasiekoers in Desembermaand verwag ekonome 'n repokoers verhoging van 25 basispunte hierdie week. Klokslag sê die SAKP dat die Reserwebank se mandaat uitgebrei moet word om werkskepping in te sluit, maar dit is ʼn slegte idee.

Following the higher inflation rate in December economists are expecting a 25 basis points increase in the repo rate this week. O cue you get the SACP calling for an expansion of the Reserve Bank’s mandate to include job creation, but that is a bad idea.

Die Wêreldbank het Vrydag ʼn $750 miljoen, of ongeveer R11,4 miljard lening vir Suid-Afrika goedgekeur. Die EFF protesteer en ʼn gereëlde luisteraar het oor die naweek vir my paar vrae gestuur.

On Friday the World Bank approved a $750 million, or approximately R11.4 billion loan for South Africa. The EFF protested and a regular listener sent me some questions over the weekend.

Die week se ekonomiese nuus is oorheers deur Desembermaand se inflasie data en die vooruitsig van ʼn repokoers verhoging volgende week. Die ander aanwysers: Novembermaand se mynbou-produksie en kleinhandelverkope los mens met gemengde gevoelens.