May CPI-X / Inflation Rate

12.5% by Aug/Sept.

Tito to have a wobbly and raise another 100 basis points by then with a view for more.

Cosatu chucks its toys and gets 10%+ for civil servants.

Everyone ***s and betaals:(
 
Pilgrim said:
Strange, I thought increasing the interest rates will fix our economy? :p
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How exactly? Becasue the anc said so?
What these idiots do not understand is that people were in debt, you increase the rate and people get more in debt therefore paying more to service debt however they are not earning more. It is a vicious circle.
 
marine1 said:
How exactly? Becasue the anc said so?
What these idiots do not understand is that people were in debt, you increase the rate and people get more in debt therefore paying more to service debt however they are not earning more. It is a vicious circle.
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And what you don't understand is that there's more to it than that. You're also trying to stabilise the exchange rate, and provide incentive for savings and investment (both local and foreign).

I'm not saying it's a simple decision - but there are two sides to it.
 
With no real sign of the easing of oil and food prices we can expect worse to come.
Factor in the hikes Moederloos eludes to and we are on a slippery slope, with no hope of respite.
 
One for the economists?

What role is 2010 playing with this pressure we have on our economy?
The massive construction going on, the importing of raw materials to do this must play a part.
While citizens are using less fuel, the government use of diesel increased by something like 9-10%.
 
We are definately in for 2 more rate hikes. To make matters worse July is going to cripple a lot of people: 1) New rates system kicks in in Jo'burg 2) Petrol price increase of 73c & 3) Eskom finally gets there 27%+ hike.

2 & 3 will directly affect the entire country and prices will go up again to compensate for higher costs, so next set of inflation data will show an increase again which will only cement the case for a further rate hike, most likely favouring 1% this time instead of the normal .5%

The saddest part of all this is even though consumer spending is on the decrease (and yes it is, were having a meeting today in my company to decide the way forward as we are going to be basically 10% down on sales country wide for the month) prices will continue to rise due to the input costs that are rising. Even if you have to drop the price to keep selling your product, you can't sell for less than your cost.
 
I say that the next interest rate hike will be a full percent. Tito was being kind with the last interest rate hike! But now, inflation is still on the up. IMO he will make a move th REALLY shock the system. I think a large part of inflation is being driven by external factors but also, consumers are still not getting the message. Rather than cutting back on their lifestyle, people are borrowing to maintain lifestyles, such as drawing out of bonds, hoping that interest rates will go down again soon. I think that the 50 basis points hikes have to a certain degree resulted in the whole frog in a pot of water slowly being heated up. People have been sitting pretty with the interest rates going up slowly. Next time, he is going to throw the frog straight into the boiling water, ie a full 1% hike...
 
Natas said:
I say that the next interest rate hike will be a full percent. Tito was being kind with the last interest rate hike! But now, inflation is still on the up. IMO he will make a move th REALLY shock the system. I think a large part of inflation is being driven by external factors but also, consumers are still not getting the message. Rather than cutting back on their lifestyle, people are borrowing to maintain lifestyles, such as drawing out of bonds, hoping that interest rates will go down again soon. I think that the 50 basis points hikes have to a certain degree resulted in the whole frog in a pot of water slowly being heated up. People have been sitting pretty with the interest rates going up slowly. Next time, he is going to throw the frog straight into the boiling water, ie a full 1% hike...
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It's not his decision, there's a meeting involved.
But yes, 1% probably.
 
I am banking on a 50 basis point hike. There is talk of stripping outside inflationary pressures as well and isolating domestic only inflation for the decision (via the grapevine). I am also not sure if taking all the external factors into account, the economy can survive another 100 basis points hike.
 
Kokop said:
12.5% by Aug/Sept.

Tito to have a wobbly and raise another 100 basis points by then with a view for more.
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Unfortunately they're so blinded they'll probably just keep up fruitlessly raising the rate.

Kokop said:
Cosatu chucks its toys and gets 10%+ for civil servants.
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At this stage they should be demanding a minimum of 15%, and that is not even an increase or enough to keep up with the real inflation rate.

Pilgrim said:
Strange, I thought increasing the interest rates will fix our economy? :p
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You have to smoke a lot of crack to believe that fantasy.

CathJ said:
And what you don't understand is that there's more to it than that. You're also trying to stabilise the exchange rate, and provide incentive for savings and investment (both local and foreign).
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No-one is going to save and local companies are going to shed staff as the increasing interest rates do the expected damage to the economy. Maybe they should have thought about not interfering with the exchange rate by buying Dollars as that currency crashed.

boramk said:
Intrest rates discourage borrowing
Thats how its supposed to help
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It's such a great idea in a country that cannot afford this strategy. We are long past the point of discouraging high demand to give supply a chance to catch up.

Natas said:
I say that the next interest rate hike will be a full percent. Tito was being kind with the last interest rate hike! But now, inflation is still on the up. IMO he will make a move th REALLY shock the system. I think a large part of inflation is being driven by external factors but also, consumers are still not getting the message. Rather than cutting back on their lifestyle, people are borrowing to maintain lifestyles, such as drawing out of bonds, hoping that interest rates will go down again soon. I think that the 50 basis points hikes have to a certain degree resulted in the whole frog in a pot of water slowly being heated up. People have been sitting pretty with the interest rates going up slowly. Next time, he is going to throw the frog straight into the boiling water, ie a full 1% hike...
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Absolutely. He really has not damaged the economy enough yet. People are borrowing more to try to survive the committee's ongoing attack on the economy. They won't stop borrowing because of a higher rate increase, they'll just borrow more until things collapse. The higher the rate goes along with inflation that won't respond (unless people cut back on their demand for luxuries like food and transport) are going to push people to borrow even more.

Consumers got the message long ago. Where are the moves to build up the supply side? Where's the stimulus for businesses to expand and grow employment?

As much as it is going to inconvenience me I have to support the unions. They need to escalate things.
 
Last edited:
Good lord!

I just went to buy rice now - the Jasmine rice that cost me R22 or so last time I bought is now R36!

holy ****.

/me ends mini rant
 
Moederloos said:
Good lord!

I just went to buy rice now - the Jasmine rice that cost me R22 or so last time I bought is now R36!

holy ****.

/me ends mini rant
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If you are complaining that R36 is too much for you (i.e. unaffordable), then buy cheaper rice. Why does it have to be Jasmine i.e. luxury rice?
 
Skinner said:
If you are complaining that R36 is too much for you (i.e. unaffordable), then buy cheaper rice. Why does it have to be Jasmine i.e. luxury rice?
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Oh come on now. What a stretch. Do you ever get embarrassed by your posts?
 
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