Friday, August 14, 2009
From Creamer Media in Johannesburg, I'm Amy Witherden.
Making headlines:
The South African Reserve Bank's (SARB's) unexpected decision to cut the repo rate by 50 basis points yesterday, was justified, given the assessment of future downward inflation pressure, says SARB deputy governor Daniel Mminele.
Mminele said that the Monetary Policy Committee (MPC) had not bowed to pressure from labour unions which have demanded steep interest rate cuts to protect the poor. The MPC's decisions are made independently, he said, based on "objective professional judgement".
The Central Bank cut its repo rate by 50 basis points to 7%, surprising markets which expected rates to stay on hold given concerns that inflation remains above the 3% to 6% target band.

World Bank President Robert Zoellick concluded a visit to Africa yesterday, stating that he is convinced this century belongs to African development, despite damage to African economies caused by the global financial crisis.
Zoellick added that Africa's needs deserve more attention and should be made a priority at a meeting of the Group of 20 developed and developing countries in the US next month.
He explained that his travels to the Democratic Republic of Congo, Rwanda and Uganda had reinforced his belief that the immediate challenge to keep Africa growing, requires more resources to bolster regional integration, as well as investments in energy, infrastructure and agriculture.

Government and business are in agreement that the country must ensure its productive capacity is not destroyed by the recession, said Economic Development Minister Ebrahim Patel yesterday.
Following a meeting with Business Unity South Africa (Busa), Patel said that the means through which the country will achieve this, requires more reflection. However, he noted that Busa and government share a number of common views regarding the recession and the way forward. Both parties are in agreement that there is a need for urgency in South Africa's response to the recession, and that bold measures must be undertaken.

Also making headlines:
President Jacob Zuma tells premiers and mayors that service delivery gaps must be closed at all levels of government.
Deputy Health Minister Molefi Sefularo says that human capital is key to improving health in rural areas.
And, Deputy President Kgalema Motlanthe urges the National Council of Provinces to increase oversight.
That's a roundup of news making headlines today.