Interest rate cut good news, but not good enough

Economists say the Reserve Bank’s latest interest rate cut will not stave off a recession.

Reserve Bank Governor Tito Mboweni on Tuesday said he believed the economy could contract further as economic data had shown output was going down.

Registered SA voters abroad get the go-ahead

All registered South African voters overseas will be able vote in this year’s election after the Constitutional Court upheld the Pretoria High Court ruling.

The international economy has taken a hard knock over the past six months and some economists and politicians are saying South Africa has not, or will not, be affected by the global meltdown. “Anyone who thinks this country has not been affected is living in cloud-cuckoo land,” says Tito Mboweni, Reserve Bank Governor.

Evidence of slowing consumption continues to grow. According to latest figures from The Reserve Bank, growth in bank credit to the private sector was below expectations over the 12 months to January 2009. Credit cards is one of the hardest hit categories as consumers tighten their belts and are reluctant to take on new debt due to the high cost of servicing it. Banks are also becoming more cautious about lending as bad debts rise. To limit future damage, banks are applying stricter criteria for extending credit.