Rate cut expected next week

[BusinessTech]

Rate cut expected next week

The South African Reserve Bank's Monetary Policy Committee (MPC) will meet next week, with economists and analysts expecting a 25 basis point cut to the prime lending rate.

 

[konfab]

Which it could be a bit more

 

[krycor]

Which it could be a bit more

The US, EU etc are cutting or soon to be cutting as Trumponomics fails and drags the globe into recession.

 

[konfab]

The US, EU etc are cutting or soon to be cutting as Trumponomics fails and drags the globe into recession.

Like magic, the legacy of Obama in terms of high economic growth, low unemployment etc turns into Trumponomics the moment anything bad happens.

Nevertheless, the US has some major financial troubles on the horizon.

In the US there are some likely triggers.
Corporate debt:
https://www.ft.com/content/8b6bca2e-48a0-11e9-bbc9-6917dce3dc62

Student debt:
https://en.wikipedia.org/wiki/Higher_education_bubble_in_the_United_States

Startup bubble:
https://theconversation.com/why-2019-could-be-the-year-of-another-tech-bubble-crash-109468

The grand-daddy of them all:
Unfunded liabilities
https://www.zerohedge.com/news/2019...ing-unfunded-liabilities-222-trillion-dollars

The only way they can get out of this one without trashing the economy by raising taxes is the following:
1) Cut spending by 10% in year one.
2) For the next 10 years, they do not increase spending at all.

Any economic growth after this would then decrease the debt-to-gdp ratio.

This type of plan is not going to come from the Democrats who want to provide healthcare to illegal immigrants, bail out student loans, implement a trillion dollar spending program on renewables and adopt single payer. A 2nd term Trump could very well be the type of president who would have the balls to do this.

 

[Trilkop]

This will have no impact on the economy or consumer expenditure. It will be a waste of time and effort if they cut rates by a 25 basis point.