US core PCE data more encouraging, SA’s private sector credit growth continues to slow

Loading player...
Latest US personal consumption expenditure (PCE) data showed a moderation in growth to 2.4% from around 3% late last year, indicating inflation is being brought under control. We are optimistic inflation will continue to ease towards the US Fed’s 2% target, which would prompt an interest rate cut – by the earliest, around June.

In SA, growth in private sector credit demand has slowed to 3.2%, largely because banks are becoming more careful in granting credit to households. Mortgage growth is only about 3%, while last year house prices nationally increased by only 1-2% on average, showing a domestic housing market that is likely to remain under pressure until interest rates are cut.
4 Mar 2024 English South Africa Investing · Business News

Other recent episodes

SA is not yet seeing second-round inflation effects: Kevin Lings

In this podcast, STANLIB’s Chief Economist, Kevin Lings, analyses the details behind SA’s below-expectation increase in inflation in September, to an annual rate of 4.5% from 4.4%. While fuel inflation is 27.9% y/y, it has not yet fed into other categories – e.g. food inflation is only 1% y/y, though…
26 Oct 10 min

MTBPS 2026 shows evidence of positive fiscal progress

In this podcast, Kevin Lings, Chief Economist at STANLIB Asset Management, highlights what was positive and what was disappointing in today’s Medium-Term Budget Policy Statement. He discusses how achievable the revenue and expenditure targets are, and stresses the need for stronger policy measures to push SA’s growth rate up to…
21 Oct 16 min

Minister delivers positive surprises for bond investors in the MTBPS

In this podcast, Sylvester Kobo, Deputy Head of Fixed Income at STANLIB Asset Management, summarises the main points of interest in the MTBPS for bond market investors. He explains how the bond market reacted in the short term and is likely to respond in the longer term. He also analyses…
21 Oct 3 min

Active vs passive investing: Choosing the right approach

When should you choose active investing over passive investing, and how do you identify a good active investment manager? In Episode 16 of The More You Know, Brendan Howie, Head of Product at STANLIB Asset Management, joins Jeremy Maggs to explore the role of active and passive investing in achieving…
19 Oct 16 min

Concerns growing about US inflation; SA’s mining production contracts again

In this podcast, STANLIB’s Chief Economist, Kevin Lings, analyses the latest US CPI inflation (an increase to 3.7% y/y) data, which reflects pressure not only from fuel but also shelter prices. This could prompt two or more interest rate hikes by the US Fed, which would have global implications. In…
19 Oct 13 min