JOHANNESBURG (Reuters) – The government said on Thursday it had suspended aid to Malawi indefinitely and accused the southern African nation’s government of mishandling the economy and trampling over human rights.
The move by Malawi’s biggest donor and former colonial ruler is likely to exacerbate a funding crisis for a government that has traditionally relied on foreign aid for more than a third of its revenue.
JOHANNESBURG, May 12 (Reuters) – The South African Reserve
Bank left its repo rate unchanged at 5.5 percent on Thursday but
emphasised the deteriorating inflation outlook, raising the
chance of an earlier-than-expected rate increase.
The market has been divided on the timing of monetary
tightening in Africa’s biggest economy, but central bank
comments about the need to be “vigilant” about domestic
inflation pressures backed the view of those who see rates
starting to rise in the fourth quarter of this year.
PRETORIA, March 24 (Reuters) – South Africa’s central bank
kept its benchmark repo rate on hold on Thursday as expected but
raised its inflation and growth forecasts, reinforcing
expectations interest rates will start to rise later this year.
Governor Gill Marcus, however, declined to comment on the
timing of any rate increase.
JOHANNESBURG (Reuters) – Europe needs to strengthen its financial rescue fund to reduce the risk of renewed global instability as U.S. tax cuts and buoyant emerging economies help propel the recovery elsewhere, the IMF said on Tuesday.
Rich nations should nurture their slower growth rates by keeping monetary policy loose, while inflation pressures may force a number of emerging economies to raise borrowing costs, and global growth engine China should look to revalue its yuan currency sooner rather than later, it said.
JOHANNESBURG (Reuters) – Europe should strengthen its financial rescue fund to reduce the risk of renewed global instability as U.S. tax cuts and emerging economies help propel recovery elsewhere, the IMF said on Tuesday.
In an updated World Economic Outlook, the International Monetary Fund said the global economy would likely expand 4.4 percent this year, a touch higher than the 4.2 percent forecast in October. It expects growth of 4.5 percent in 2012.
JOHANNESBURG (Reuters) – South Africa’s economic development Minister Ebrahim Patel’s plan to weaken the rand by cutting interest rates is unlikely to gain support in government and would not increase the country’s competitiveness.
His proposals on the rand are at odds with the policy articulated by both the central bank and the Finance Ministry and raise old questions over who exactly is driving policy.
JOHANNESBURG, Dec 14 (Reuters) – South Africa has eased
exchange controls further to let local institutions invest more
abroad in an attempt to offset a surge in foreign inflows which
have strengthened the rand.
But analysts saw limited immediate rand impact from the 5
percentage point rise in the amount institutional investors can
take offshore, announced by Treasury late on Monday “as part of
a package of measures to respond to surging portfolio inflows”.
JOHANNESBURG (Reuters) – South African stocks edged higher on Monday as rising metals prices boosted mining shares and also briefly pushed the rand to a four-year high against the euro.
The rand rose to as high as 8.9553 against the euro, its highest level in four years, but reversed those gains late in the session to trade at 9.13.
JOHANNESBURG, Dec 4 (Reuters) – South Africa’s labour
federation COSATU on Saturday reaffirmed its support for the
ruling African National Congress party but said it would not
support leaders who are corrupt.
Tensions between the ANC and its labour ally COSATU have
increased in recent months as COSATU has been angered at the
government’s refusal to implement more left-leaning policies
including an expansive fiscal policy and looser monetary policy.
JOHANNESBURG, Nov 22 (Reuters) – South Africa’s rand firmed
slightly against the dollar on Monday after news that Ireland
had requested an international bailout for its banking and
Uncertainties about a rescue package for Ireland had weighed
on the rand at the end of last week as the eurozone is South
Africa’s largest trading partner.