Reserve Bank chops rates by 100 basis points

[BBSA]

Was it not supposed to be announced at 15H00?

Any news?

 

[Road runner]

its on 3 now

 

[marine1]

Any update?

 

[CathJ]

Cut by 1%.

 

[marine1]

100 basis points

 

[DarkDenim]

http://www.moneyweb.co.za/mw/view/mw/en/page1

The Reserve Bank followed the Bank of England’s footsteps by cutting rates on Thursday by 100 basis points.



Before announcing the decision, Reserve Bank Governor Tito Mboweni revealed:

That domestic inflation is falling;

The economy is being adversely affected by global turbulence;

Inflation forecasts are similar to those of December;

Inflation will average 7,5% in the first quarter 2009; and 5,2% in the third quarter;

If food and petrol were excluded CPIX would've measured 8,7% in December;

Inflation is expected to breach the range again in the first quarter of 2010, due to base affects;

Rand continues to pose upside risk to inflation;

Inflation risks of oil and food subsided somewhat;

Consumers may see food price relief;

Economy continues to show signs of slowing;

The trade-account deficit probably contracted in fourth quarter 2008;

Consumption expenditure to remain under pressure

Outlook for world economy has deteriorated further

Growth prospects for emerging nations deteriorated

Vehicle sales fell, (Mboweni joked that if you drive the N1 highway between Pretoria and Johannesburg often, you wouldn't say that!)

Early Thursday the Bank of England cut interest rates by another 50 basis points, to the lowest level in the banks 315-year history, to help the British economy out of recession by getting consumers and companies to spend again.

The rate is now at 1%.

 

[CathJ]

Pfft. Inflation is falling because they changed the composition of the basket.

 

[Sneeky]

not the first time the basket has been revised and it wont be the last.

Wait my friends, regrettably there are very difficult times ahead for almost everyone.

Automotive build down already 35% in Jan, up on the 25% in December, 4000 jobs at component manufacturers at immediate risk.

We have not even begun to smell the global recession, but it is on its way.

 

[Dolby]

What is prime now? 14%?

 

[Sneeky]

yup, and as refreshing as it is that Tito and his merry men/women have progressed and are now dealing with natural numbers, this is still to high.

 

[DJ...]

Way too high, and they're already coming up with pre-emptive excuses for not decreasing interest rates as much as anticipated, saying the new basket weightings are not having as significant an impact as originally anticipated. The next two announcements will be the interesting ones...

 

[JK8]

Vehicle sales fell, (Mboweni joked that if you drive the N1 highway between Pretoria and Johannesburg often, you wouldn't say that!)

See I told you...

 

[DJ...]

Mboweni joked

*falls of chair*

 

[Sneeky]

because his bras have skrewed up all the roads at once.
Awesome city planning.

 

[HypoThesis]

because his bras have skrewed up all the roads at once.
Awesome city planning.

And the ones that aren't buggered are filled with potholes.

 

[quik]

And the ones that aren't buggered are filled with potholes.

The turn off from Old Pretoria (just after Olifantsfontein) into the corporate area looks like a bomb was dropped there. HUGE holes, anything faster than 5km/h around that corner and your tires will be shredded and your rimms buckled, probably suspension damage too. There's going to be a massive accident there if they don't do something soon.

 

[Sneeky]

In fairness regarding the potholes, all the recent rain on in the ol Transvaal has certainly not helped and only made matters much worse. Must be a nightmare trying to get to fix all of them.

 

[TMoose]

In fairness regarding the potholes, all the recent rain on in the ol Transvaal has certainly not helped and only made matters much worse. Must be a nightmare trying to get to fix all of them.

Strange how they managed to fix all the holes 15 years ago though. I can't remember the roads being tarred with sea sand back then. Now it the morning dew washes away the road and destroys the traffic light cabling. I wonder what magic substance they build their roads with in the UK, where it rains all the farking time, yet no potholes in sight.

 

[milomak]

Strange how they managed to fix all the holes 15 years ago though. I can't remember the roads being tarred with sea sand back then. Now it the morning dew washes away the road and destroys the traffic light cabling. I wonder what magic substance they build their roads with in the UK, where it rains all the farking time, yet no potholes in sight.

yeah 15 years ago you had nowhere near the same traffic volumes.

 

[Frankie]

yeah 15 years ago you had nowhere near the same traffic volumes.

And just like Eiskom, there's been no planning and infrastructure development for the past 15 years.