South African inflation under control; US President Trump signs a flurry of new orders

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SA’s December annual inflation rate, at 3% (from 2.9% in November) was surprisingly low, showing few signs of pressure other than in administered services. This should encourage the Reserve Bank to cut interest rates at end-January by 25 bps to 7.5%. We expect the bank will remain cautious but will make a further rate cut to 7.25%, the neutral rate, by mid-year.
US President Donald Trump signed 36 executive orders in his first week. Some of the themes were: tariffs, where he imposed less than expected; energy and the environment, allowing for more exploration for oil and gas; border and immigration control; reversing various diversity and inclusion initiatives; and the federal workforce, where he introduced a hiring freeze and restructuring. For SA, new US policies on energy and immigration are likely to be the most significant at this stage. Click here to listen to the podcast.
27 Jan English South Africa Investing · Business News

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