SIKI MGABADELI: Good evening and welcome to the SAfm Market Update with Moneyweb. My name is Siki Mgabadeli.
A big week for economic data locally. The Reserve Bank’s MPC is due to make its decision on interest rates known on Thursday. The consensus is that it will hold the repo rate at 7% and prime at 10.5%. But you never know. So we are going to go through some of the data that will be unpacked this week.
Icasa has decided to issue spectrum licences, a move that has been welcomed as a major progressive step for the economy because it says it will accelerate the rollout of 4G wireless networks. So we are going to unpack firstly what spectrum is, what it means for you, what it means for mobile operators, and how it could change all of our lives and the cost of internet access for all of us.
On Mining Monday we’ll look at some of the stories making headlines in the mining industry.
Nerina Visser is watching the markets for us today. But first, Tumisang has your business news headlines.
TUMISANG NDLOVU: Thanks, Siki. Good evening.
Analysts say the market is awaiting a rate decision from the Reserve Bank’s Monetary Policy Committee. Expectations ahead of that decision this Thursday are that the MPC will leave the repo rate unchanged at 7% after hiking rates twice this year. Central bank governor Lesetja Kganyago raised some concerns after the previous MPC meeting.
LESETJA KGANYAGO: Domestic economic growth continues to disappoint. While there are signs that the economy may be reaching the low point in the growth cycle, the recovery is expected to be slow. Inflation is now expected to average 6.7% in 2016, compared with 6.6% previously.
TUMISANG NDLOVU: New research on the national minimum wage shows that more than 85% of economic sectors would see positive employment impacts with minimal job losses. That’s according to a study by Applied Development Research Solutions in conjunction with the National Minimum Wage Initiative at Wits University. While government claims implementation will happen this year, business has been accused of prolonging discussions and refusing to engage on critical issues on this matter.
And finally, rules outlawing public servants from doing business with government are reportedly on their way. The draft rules have been issued by the Department of Public Service & Administration for comment. The deadline for that is August 15.
Financial indicators this hour: The rand is at R14.27/dollar, R18.94/pound and R15.80/euro. Gold is at $1 328.30/oz, platinum at $1 094/oz and Brent crude oil at $46.66/barrel.
More on these and other business stories on the Moneyweb website.