SA’s inflation slows more than expected while US Fed flags looming rate cuts

Loading player...
SA’s headline Consumer Price Inflation (CPI) rate for July was surprisingly subdued, slowing to 4.6% from 5.1% in June. This reflects a slightly lower than expected electricity tariff hike and a slowdown in food price increases, as well as fuel price cuts. The slowing inflation trend makes it more likely that the SA Reserve Bank will start to cut interest rates in September.
In the US, signals from the Federal Open Market Committee and Federal Reserve chairman Jerome Powell indicate more confidence that inflation is trending downwards. It has also become clear that the US labour market is weakening. The longer the Fed waits to cut rates, the greater the risk that the economy will go into recession. STANLIB expects the Fed will implement a series of gradual interest rate cuts, starting in September and continuing into 2025. Click here to listen to the podcast.
26 Aug 2024 English South Africa Investing · Business News

Other recent episodes

Active vs Passive investing: Where does each fit in a portfolio?

Active and passive investing each have distinct characteristics and can play different roles within an investment portfolio. In this episode of The More You Know, Ryan Basdeo, Head of Index Portfolio Management at 1nvest, and Brendan Howie, Head of Product at STANLIB Asset Management, explore the differences between active and…
1 Oct 11 min

SARB hikes rates: What it means for your STANLIB Money Market Fund

In this podcast, Stephen Backhouse, Head of Retail Strategy: Group Channels at STANLIB Asset Management, chats to Eulali Gouws, Head of Money Market, about the interest rate decision. Eulali explains the reasoning behind the decision, how the team positions the STANLIB Money Market Fund to respond to the interest rate…
25 Sep 5 min

Evolving role of women in wealth creation and capital allocation

Women are increasingly influencing capital allocation and investment decisions. More women are actively determining where capital is allocated, how risk is being managed, and what long-term success looks like, not only for their families, but also for their businesses and for their own investment portfolios. In the latest episode of…
23 Sep 16 min

Surprise SA retail figures in July, with softening trend expected

In this podcast, STANLIB’s Chief Economist, Kevin Lings, focuses on the US interest rate decision to hike rates by 25bps and what the environment suggests for interest rates going forward, with at least two hikes expected this year. He also examines SA retail sales in July, which surprised strongly to…
21 Sep 11 min