Wednesday, January 27, 2010
From Creamer Media in Johannesburg, I'm Rosalia Matlou.
The South African Reserve Bank (SARB) kept the repurchase rate steady at 7% a year, following the conclusion of its Monetary Policy Committee (MPC) meeting yesterday.
"The decision of the MPC, however, was not unanimous," said SARB governor Gill Marcus, explaining that there were strong voices for a cut but no calls for an increase.
Marcus said that the longer-term inflation outlook remains "relatively favourable", notwithstanding some base effects that are likely to adversely affect the inflation outcomes in the short-term.
She added that the global economy is characterised by an uneven recovery across regions with some risks persisting, while the global inflation outlook appears to be contained.
The International Monetary Fund (IMF) sharply raised its global economic growth forecast yesterday, casting developing countries in a leading role while rich nations struggle with high unemployment and government debt.
In an update of its World Economic Outlook, the IMF said that the world economy will expand by 3,9% in 2010, much higher than the 3,1% it projected in October 2009. IMF chief economist Olivier Blanchard said that while not optimistic, the IMF is less pessimistic than it was in October.
While an economic recovery appears to be gaining traction, the IMF warns that the financial system remains fragile in the richer countries and banks will need a lot more capital. As a group, advanced economies are expected to expand 2,1% this year.
In emerging and developing markets, strong internal demand will provide "relatively vigorous" growth, the IMF said, revising up its growth forecast for emerging and developing countries by almost one percentage point to 6% in 2010.
If South Africa's medical parole policy is reviewed, it would have no bearing on prisoners who have been granted parole prior to the enactment of a review, said the chair of the national council on correctional services, judge Siraj Desai yesterday. He said that recommendations of the new policy were that medical parole could be revoked, if a person recovered from an illness. However, these "rules do not envisage being retrospective in nature". Correctional Services Minister Nosiviwe Mapisa-Nqakula said that the law is silent as to whether people released on medical parole who have recovered should finish their sentences in incarceration.
Also making headlines:
Power utility Eskom prepares an affidavit in response to its former CEO Jacob Maroga, who is suing for reinstatement, or for R85,7-million in compensation.
Thousands march for free media and elections in the Côte d'Ivoire.
South African Health Minister Aaron Motsoaledi recommits government to primary healthcare.
And, US Secretary of State Hillary Clinton raps Nigeria for corruption and bad governance.
That's a roundup of news making headlines today.