Credit data raises rate hike chances

GROWTH in demand for credit by the private sector quickened to 25,08% year-on-year last month, Reserve Bank data showed today, making another interest rate increase next week more likely.Credit growth accelerated from a downwardly revised 24,09% in March while the broadly defined M3 measure of money supply grew by 22,27%, above forecasts, compared to 20,02% the previous month.

“I think it seals the fate for a rate hike. It is definitely worse than we had anticipated,” said George Glynos, economist at ETM. More…

Recovery sparks Spescom surge

Information Technology Editor
SHARES in telecoms company Spescom temporarily gained 16% yesterday to reach a 52-week high of 140c as it posted interim results showing a return to profitability.

A year ago Spescom posted a loss of R11,3m for the six months to March, and clocked up a R20m loss for the full year.

In the past six months the company had pulled back to achieve a net profit of R2,9m. More…

‘Vigilant’ Bank will not hike rates

Mboweni repeats warnings about the strength of consumer spending, writes MARIAM ISA THE central bank would remain “vigilant” for signs that inflation is spreading, but would not raise interest rates in a bid to fight rising prices for food and fuel, said governor Tito Mboweni. Lifting interest rates in the absence of the so-called “second- round” effects of higher fuel and food costs would be futile and could do more harm than good, he told a Rotary International conference in Pretoria on Friday. “We cannot respond by increasing interest rates on the occasion of these two factors — if anything, we might worsen the situation,” he said. More

Reserve Bank taken to task on interest rate delays

Economics Editor
A FEW lone voices are taking the South African Reserve Bank to task for keeping interest rates unchanged early this year, saying it should have been more cognisant of the pressures which pushed inflation above the top of its target range for the first time in nearly four years during April.

The data justified criticism aimed at the Bank’s “risky” decision to leave interest rates unchanged at the past two policy meetings in February and last month, wrote Efficient Research in a note after yesterday’s data. More…

Steinhoff, JD Group still eyeing European growth

By Tom Robbins Cape Town – Both JD Group and Steinhoff International still have an eye on expanding their retail footprints in the growing European market, despite the failed merger between the two. JD Group executive chairman David Sussman said yesterday that the retailer’s plan to extend its European reach would “take that much longer” after the failure of the deal. Steinhoff, which has significant furniture making interests in Europe, was more circumspect, but said it would consider expanding its vertically integrated furniture retail business on the continent. More…

Inflation rate breaches Mboweni’s 6% ceiling

By Tonny Mafu

Johannesburg – South Africa’s consumer inflation rate has breached the upper limit of the Reserve Bank’s 3 percent to 6 percent target band, making a strong case for interest rate increases next Thursday.

While economists’ consensus forecasts had estimated that last month’s consumer inflation, as measured by the consumer price index stripped of mortgage rates (CPIX), would reach 5.9 percent year on year, it actually hit 6.3 percent.

It is the first time in 44 months that consumer inflation has broken above the target range. CPIX rose 5.5 percent in March after an increase of 4.9 percent in February.

Mr Price dressed in Sunday best

Johannesburg – Clothing retailer Mr Price on Thursday reported a 27 percent growth in diluted headline earnings per share to 183.6 cents for its financial year from 144.7 cents in 2006.

A distribution per share of 101 cents was also reported from the 81 cents distributed a year earlier, an increase of 25 percent.

Retail sales for the year to 31 March were up 24 percent to R6.1 billion, while the company also reported that 80 new stores had been opened during the period. More…

Credit growth may force bank’s hand

Johannesburg – The rate of growth of South Africa’s broad M3 money supply measure rose by 22.27 percent in the year to end-April from 20.02 percent in the year to end-March, the South African Reserve Bank said.

Credit extension to the private sector (PSCE) grew at a rate of 25.08 percent year-on-year (y/y) from 24.18 percent in March.

According to the new definition, which excludes loans made to provincial governments, credit extension growth was at 24.38 percent from 24.19 percent in March. More…

Inflation rate breaches Mboweni’s 6% ceiling

By Tonny Mafu

Johannesburg – South Africa’s consumer inflation rate has breached the upper limit of the Reserve Bank’s 3 percent to 6 percent target band, making a strong case for interest rate increases next Thursday.

While economists’ consensus forecasts had estimated that last month’s consumer inflation, as measured by the consumer price index stripped of mortgage rates (CPIX), would reach 5.9 percent year on year, it actually hit 6.3 percent. More…

Thousands try to beat amnesty deadline

About 4 000 small business owners a day are rushing their tax amnesty applications to revenue offices nationwide to beat Thursday’s deadline, the SA Revenue Service (SARS) said on Tuesday.

“We’ve seen the queues getting longer,” said SARS spokesperson Adrian Lackay.

“We’re receiving about 4 000 applications per day nationally.”

Lackay added that “far more than 73 000 applications” in total had been received since the amnesty opened on August 1. More…