Latest news with #Nedbank
The Citizen
2 days ago
- Business
- The Citizen
Producer Price Index remains unchanged, but an increase is coming
'Altogether, we expect PPI to average around 3% in 2025'. Producer Price Index (PPI) in April remains unchanged at 0.5% from March 2025. PPI measures the average change in prices of goods and services produced by manufacturers and producers. It tracks inflation at the production level, showing how costs are changing for goods before they reach consumers. Statistics South Africa (Stats SA) released the Index on Thursday, showing PPI increased by 0.5% month-on-month. However, economists believe that producer inflation is likely to rise moderately in the coming months. Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at the North-West University (NWU), this week told The Citizen the annual 0.5% PPI is very low. However, the month-to-month is on the high side. ALSO READ: Small fuel price decrease no help for consumers in looming rough ride Positive contributor in the PPI Stats SA stated that the main positive contributors to the headline PPI annual and monthly inflation rate were food products, beverages, and tobacco products. Annually, the products increased by 4.7%, contributing 1.4%, while monthly, they increased by 0.9%, contributing 0.3%. The index shows that the annual percentage change in the PPI for intermediate manufactured goods was 8.5% in April 2025, compared with 7.4% in March 2025. The index increased by 2.4% month-on-month. The main contributors to the annual rate were basic and fabricated metals and chemicals, as well as rubber and plastic products. The products increased by 4.2%, contributing 1.2%. How does the PPI affect consumers? If producers face higher costs, these costs might be passed on to consumers through higher prices on goods and services. Increasing PPI can also mean an increase in future for consumer prices. Nedbank economists predict PPI will moderately increase in the coming months. 'The low base established in the second half of last year will amplify the upward trend, particularly on food. Local food prices will also be affected by higher global food prices, a weaker rand and potential disruptions to global supply chains due to the unfolding trade war.' ALSO READ: Godongwana cuts zero-rated food basket in Budget 3.0 Electricity and water The statistics show that the annual percentage change in the PPI for electricity and water was 11.2% in April 2025, compared with 10.0% in March 2025. 'The index increased by 6.4% month-on-month. The contributors to the annual and monthly rates were electricity and water.' Greater concern for food Nedbank also said the outbreak of animal diseases is a concern for livestock. Economists expect global oil prices to remain relatively subdued in 2025, owing to balanced supply and demand dynamics. Beyond food and fuel, upward pressure will also come from steep electricity tariffs. Renewed rand weakness poses the most significant upside risks to the outlook. 'The rand remains vulnerable to fragile global risk sentiment, which could shift dramatically in response to any escalation in the global trade war, changes in US monetary policy, or a prolonged period of acute policy and geopolitical uncertainty.' 'Altogether, we expect PPI to average around 3% in 2025.' NOW READ: Budget 3.0: Fuel levy replaced VAT hike, but is it the better option?
Reuters
3 days ago
- Business
- Reuters
South African rand steady before interest rate decision, PPI data
JOHANNESBURG, May 29 (Reuters) - The South African rand was steady in early trade on Thursday, ahead of a much-anticipated interest rate decision by the South African Reserve Bank (SARB) and monthly producer inflation figures. At 0702 GMT, the rand traded at 17.92 against the dollar , little changed from Wednesday's closing level. Statistics South Africa will publish April domestic producer inflation figures at 0930 GMT, and Nedbank economists said in a research note that they expect it to have remained steady at 0.5%. Investor attention will be pinned on an interest rate decision by the central bank expected around 1300 GMT. The majority of economists polled by Reuters expect the bank to trim its main lending rate (ZAREPO=ECI), opens new tab by 25 basis points, though a significant minority think the rate could be left unchanged. Inflation (ZACPIY=ECI), opens new tab is currently below the central bank's target range, though policymakers have stressed risks from U.S. President Donald Trump's trade war and domestic politics. "The upside risks to the outlook have subsided since the March meeting," the Nedbank note said. South Africa's benchmark 2030 government bond was also little changed in early deals, with the yield at 8.78%.
Daily Maverick
3 days ago
- Business
- Daily Maverick
Royally flush — Queen Máxima on financial health tour of Cape Town
Queen Máxima of the Netherlands is an economist on a mission to promote financial health. She visited Cape Town to learn and share. When I first got the call that there might be an opportunity for me to interview Her Majesty Queen Máxima of the Netherlands, I thought there must be a mistake. However, her role as the UN Secretary-General's Special Advocate for Financial Health put it all in perspective. Personal finance has always been my passion, and for me financial literacy is the pathway to financial health. Queen Máxima is equally passionate about financial health, and her role is an evolution of her work as the UN Secretary-General's Special Advocate for Inclusive Finance for Development, which she had been for 15 years. After years of advocating financial inclusion, Queen Máxima maintains that access alone is no longer enough. Financial service providers and policymakers should be reviewing products with financial health as the desired outcome. Her focus areas are the development of products and services that help people to achieve financial health by enabling them to: Manage their day-to-day finances; Build a buffer to withstand financial shocks; Invest to reach short- and long-term goals; and Gain confidence in their financial future. The queen cuts a striking, statuesque figure, the epitome of elegance. She wore a navy blue pantsuit with her hair tied back simply. The African skies saw fit to welcome her with a shower of rain, or African blessings as some believe. At 1.8m, blonde and slim, the queen would not be out of place on a catwalk – but she is actually a qualified economist. So, when she sets out to promote financial health she knows what she is talking about. Financial inclusion in the Netherlands is 99.7%, and of its roughly 8.4 million households, only about 1.4 million have financial problems. About 726,000 have 'problematic debt'. Problematic debt is a situation where your debt has become unmanageable, resulting in depression and other negative effects. Despite the apparently high numbers, the Netherlands presents a striking difference to South Africa, where only 16% of South Africans are considered financially healthy. As we visited different sites around Cape Town, it quickly became clear that the queen's focus is on financial health, rather than simply financial inclusion. Financial inclusion means ensuring access to financial services such as banking, credit, savings accounts and insurance. Financial health is another rung on the ladder to financial success, building on financial inclusion to achieve the ability to live within your means, save and plan for the future and cope with unexpected expenses. Our first stop was Khayelitsha. As we braved the rain to enter the building, we were met by the Voice of Hope youth choir, who had gathered to sing and dance in the queen's honour. Nedbank launched a branch in Khayelitsha in 2003, which has grown into a 'mega-branch' today, offering self-service kiosks to increase digital banking and mobile banking units to serve customers where they are. Noluvuyo Ndyoko of the Masikhulo Savings Club, a stokvel, told the queen how the stokvel had opened an account with Nedbank in 2008. Today it boasts 142 members. 'We offer our members loans at lower interest rates of 7.5% so that they don't turn to loan sharks,' she said. To instil financial discipline and ensure loans are repaid, the stokvel imposes steep penalties of 30% for missed payments, and members who are absent from meetings without excusing themselves pay a R200 fine. 'In the last month we made about R49,000 in penalties alone,' Ndyoko said. The queen was clearly invested in the conversation. She had done her homework and already understood the concept of a stokvel. Smiling gently as she listened to the stokvel members, she asked questions that revealed her interest. This keen interest in financial health shone through at the next site visit – China Town in Ottery, where we met Namhla Cengani, an entrepreneur with a business based on WhatsApp. Cengani accessed a microloan via Spoon Money, which allowed her to expand her business by taking on more stock. 'Although I have a bank account, the loan criteria are so stringent that, as an entrepreneur with an unstable income, I do not qualify,' she told the queen. Cengani outlined how Spoon Money also supports its clients with financial literacy via a WhatsApp group. 'Before I worked with Spoon Money, I was just living month to month. I didn't know how to manage a business. Now I understand that owning a business doesn't mean using all the profit each month. You have to pay yourself a salary and reinvest the money into your business so it can grow,' she said. The third and final stop on the trip was the Discovery Bank branch in Sea Point. A far cry from the two previous sites, the queen was met there by Discovery Bank CEO Hylton Kallner, who talked her through the concept of Vitality and how the bank uses the same principles as other divisions of Discovery to drive positive client behaviour. The behaviours Vitality Money encourages include spending less than you earn, saving regularly, insuring for adverse events, paying off property and investing long-term. Queen Máxima emphasised that although South Africa has made notable strides in financial inclusion, the lack of financial health is weakening resilience and stalling inclusive growth. She also heard from Discovery Bank clients Jonathan and Latoya Cleary about their journey to financial wellbeing using the Discovery Bank Vitality programme. They enrolled in a financial education course offered on the Discovery Bank app. Then they used the budgeting and financial planning features of Vitality Money to help track expenses, manage debt and set the goals of owning a home and being debt-free. DM This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
Mail & Guardian
5 days ago
- Business
- Mail & Guardian
Reserve Bank likely to leave interest rates unchanged on Thursday
The South African Reserve Bank is likely to hold interest rates unchanged The The Reserve Bank cut interest rates by 25 basis points for three consecutive meetings last year, in the face of moderating inflation and lacklustre economic growth. But it kept the benchmark interest rate unchanged at 7.5% at the first policy meeting of 2025 in Although tensions in the global and local environment have eased in May, compared with March, when steep 'While the global environment has become less tense, we still believe that persistent policy uncertainty will continue to push monetary authorities to err on the side of caution,' FNB's economic unit said in a note. 'However, the same uncertainty that kept the MPC cautious in March has not necessarily dissipated. In fact, one could argue that we now have an idea how much higher tariffs on SA could be without a bilateral trade deal or further extension of the pause ahead of the July deadline.' It added that as the government's diplomatic efforts unfold, 'the MPC could choose to delay monetary policy moves and cater for any issues around sentiment and capital flows'. Last week a delegation led by President Cyril Ramaphosa met US President Donald Trump to discuss The Nedbank Group economic unit said in a note that although The bank cautioned: 'The risk of renewed market volatility remains high due to fragile investor sentiment, battered by the relentless barrage of US policy changes. 'With the switch to a lower inflation target looming, the MPC will likely wait for more clarity.' There are discussions about changing the inflation target, which comes after Reserve Bank governor Lesetja Kganyago last year signalled a desire to set a lower midpoint for the inflation target in line with global peers. The central bank has a mandate from the treasury to keep inflation within a 3-6% target band, with a midpoint of 4.5%. The Reserve Bank will stay cautious until the global economy settles down and South Africa's domestic environment signals recovery, said Citadel chief economist Maarten Ackerman. 'The Reserve Bank is more focused on maintaining stability relative to the US dollar, to preserve the attractiveness of local assets and prevent further rand weakness. A surprise rate cut could lift consumer sentiment, but is unlikely given the Reserve Bank's transparent communication and conservative track record,' he said. 'If they haven't acted in previous windows of opportunity when inflation was low, it's unlikely that they'll surprise now.'
The Citizen
5 days ago
- Business
- The Citizen
Expo shines spotlight on local talent and growth
The Midvaal Local Municipality inaugural Digital Expo promises an era where service delivery will be heightened and the consumer will not be left behind. The Expo took place from May 22 to May 24 at the Balmoral Gardens in De Deur. The event boasted a variety of exhibitors who through information, educated attendees about the promise of the digitisation of municipal services and what that would mean for them as consumers. In government, digital transformation refers to the process of using technology to make government services more accessible, efficient, and transparent. Key stakeholders, including Nedbank, CSIR, Vodacom, BCX, PTPI, VUT, and Boxfusion, shared their perspectives on how digital tools can make a significant difference in improving municipal services while driving inclusion. During presentations, the consensus between all speakers was that digitisation presents an opportunity where feedback between the consumer and the municipality happens in real time. The event highlighted the transformative potential of digital technology in improving municipal service delivery, with a strong commitment to fostering inclusion, innovation, and community empowerment. The expo was carried out under the theme: 'Digital Technology and Its Application in Municipal Service Delivery'. MMC for Corporate Services, Mokete Motsamai highlighted that as part of the mayoral commitment to creating a forward-thinking, responsive local government, the municipality strives to push the boundaries of innovation. 'By integrating cutting-edge digital technologies,the municipality aims to enhance service delivery across Midvaal, ensuring that no community is left behind. This commitment includes a focus on equitable access to services.' The first day of the event included engaging presentations and a dynamic panel discussion with leading digital industry experts, who discussed the latest trends in technology, innovation, and inclusive service delivery. On May 23 and 24, the Expo featured a hackathon, where graduates from the Midvaal area collaborated to develop innovative, inclusive solutions for real municipal challenges. The hackathon is a unique opportunity for local talent to actively contribute to the future of their community, with a strong focus on designing accessible and equitable digital solutions. The event provided a platform for thought leaders, industry experts, and innovators to explore how digital advancements can enhance governance, particularly by ensuring the benefits of technology are accessible to all residents. The Digital Expo represents a crucial milestone in Midvaal Local Municipality's ongoing efforts to leverage technology for improved service delivery. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
