Wednesday, October 14, 2009
From Creamer Media in Johannesburg, I'm Megan Wait.
South Africa's Central Bank has offered "sufficient" monetary policy accommodation and fiscal investment to help pull the economy out of a "mild" recession, says Central Bank governor Tito Mboweni.
Africa's biggest economy slumped into its first recession at the start of the year, later than the rest of the world, and recovery is expected to lag developed economies.
Speaking at a farewell dinner, Mboweni said that the Reserve Bank and government have done enough to pull the economy out of recession. South Africa could start growing again this year, supported by a large government infrastructure spending programme.
The Central Bank's monetary policy committee meets again next week with most analysts seeing interest rates already at their lowest level.
World Trade Organisaton (WTO) DG Pascal Lamy said yesterday that minor barriers to trade could slow down the speed of a global economic recovery even if protectionism has not reached the high levels seen in the past.
Speaking at a conference in Berlin, Lamy said that a decline in trade volumes appears have bottomed out, with the global economy on track for a fragile recovery. The WTO expects world trade to contract by 10% this year.
Lamy added that a successful agreement of the Doha round of trade negotiations could help governments unwind their massive stimulus packages and spur economic growth. However, much work remains and a "political push" is needed if such a deal is to be accomplished before 2011.
International Energy Agency head Nobuo Tanaka says that the world needs to build 100 major projects for capturing and burying greenhouse gases by 2020 and thousands more by 2050 to help combat climate change. This drive, mostly to capture emissions from coal-fired power plants, is expected to cost $56-billion by 2020.
Carbon capture funding could be a key element of a new United Nations (UN) climate treaty due to be agreed in Copenhagen in December.
UN studies have indicated that carbon capture and storage could do more to limit greenhouse gas emissions this century than a shift to renewable energies, but it has been limited by high costs.
Also making headlines:
The ruling tripartite alliance political council stresses that the African National Congress will decide on its own policy objectives.
Human rights groups say that the United Nations must protect civilians or stop its Congo peacekeeping operations.
Former Constitutional Court Judge Johann Kriegler is expected to file court papers to challenge the Judicial Service Commission's decision on John Hlophe today.
And, Zimbabwe prosecutors seek to indict the Movement for Democratic Change's Roy Bennett on terrorism charges.
That's a roundup of news making headlines today.