Good morning. Today we’re covering the repo rate hike from the SA Reserve Bank, the ANC’s KZN elective conference over the weekend and US President Joe Biden tests positive for Covid-19.
Reserve Bank signals sharper rate hikes ahead as it confronts inflation – Business Day (for subscribers)
SA Reserve Bank governor Lesetja Kganyago hiked the repo rate by another 75 basis points on Thursday, which brings the repo rate to 5.5% and the prime rate to 9%. The monetary policy committee was split in its decision with three voting for the 75 bps hike while one wanted a 100 bps hike while another wanted just a 50 bps hike.
The 75 bps hike surprised many with only four out of 23 economists surveyed by Reuters expecting it.
And bankers are expecting further sharp repo rate increases in the coming months as the central bank looks to curb persistently high inflation. Read more here.
ANC’s KZN elective conference set for hot and dangerous fight for power – Daily Maverick
The jostling over leadership positions in one of the ANC’s most important provinces will be hotly contested this weekend while the rumour mill has been in overdrive this week ahead of the KZN elective conference. Each of the top five positions could have up to three candidates contesting the position.
The biggest rumour is that President Cyril Ramaphosa will be arrested for the Phala Phala forex robbery when he travels to KZN to deliver the closing speech at the conference on Sunday. There were also marches led by pro-Jacob Zuma and radical economic transformation factions in the province last week to demand that the KZN police arrest Ramaphosa.
However, Mdumiseni Ntuli, the ANC KZN provincial secretary said that if the police wanted to arrest someone they could do so anywhere in the country and would not wait until they came to KZN. Read more here.
Biden to work in isolation after testing positive for Covid-19 – Daily Maverick/Reuters
US President Joe Biden, the oldest person to serve as US president, has contracted covid-19 and is experiencing mild symptoms. The 79-year-old will continue working and will isolate for five days.
Biden has been fully vaccinated and boosted twice and while White House doctors say the president’s oxygen levels remain normal, questions persist about the president’s health given his advanced age. Read more here.
Here’s what else we’re reading today:
Inflation-busting rate hike: ‘Full impact on economy will only be felt in 2023’ – EWN
SA Reserve Bank’s 75 basis points rate hike raises the odds of an imminent peak in inflation – Daily Maverick
Gordhan reiterates call for help to find skilled engineers to solve Eskom crisis – EWN
Mkhwebane’s throw of the dice: Public Protector tries to drag Ramaphosa into impeachment proceedings – News24
Eskom heads to court to overturn 9.6% tariff hike – fin24
Ramaphosa has failed to deliver on promises made during Sona, says Thabo Mbeki – TimesLIVE
Fikile Mbalula calls on Prasa board to stamp out corruption, threatens to wield axe – Daily Maverick
Stellenbosch urine saga: Theuns du Toit expelled after university finds him guilty – News24
Ukrainian grain export pact expected ‘within days’; Russian forces will run out of steam soon – UK spy chief – Daily Maverick
