Economic Outlook for SA in 2024 with Mandisa Zavala

Inflation or the rate at which prices are increased has moderated. And that's a welcome relief for consumers burdened by the cost of living crisis. Consumer price inflation came in at 5.5% in November.
Which is lower than 5.9% in October. The Reserve Bank tries to keep inflation below 6% to ensure that consumers don't find themselves in a position where it takes a lot more cash to buy the same goods. This data will be used to determine interest rates early next year.
South Africa's benchmark interest rate or repo rate is currently 8.25%. That's the highest it's been in more than 10 years. In fact, interest rates were only higher in recent decades after the financial crisis of 2008 and 2009.
Prime interest which affects any of us who apply for debt to buy a home or car for example is significantly higher. It's currently 11.75%. Now the problem is that inflation has been high, interest rates have been high and South Africa's economy is hardly growing. Which does not provide hope or comfort to those without jobs.
Let's put this all together and see what it means for 2024 now.
To discuss we're joined by Mandisa Zavala, Head of Asset Allocation at Alexander Forbes.
For more news, visit sabcnews.com and #SABCNews on all Social Media platforms.

[@Macedonia270]

Nothing is "coming down"....The rate of INCREASE is slowing down...

[@stlouisix3]

exactly

[@lawrencehenshaw7491]

I would hate to see interest rate coming down as it is needed to pay back the Dept that eats up alot of our GDP and it would stop people making personal debt. Also stop companies import finished goods they should build branches here and employ our citizens.

[@stlouisix3]

Inflation will continue to be created or engaged in by the Reserve Bank and debt will increase across the board.