Interest rate remain unchanged – two hikes expected in 2021
The monetary policy committee kept the repo rate unchanged at 3.5%, and governor Lesetja Kganyago said that the Reserve Bank’s models do not make provision for further repo rate cuts in the near term, but foresee two rate increases in the third and fourth quarters of 2021.
Two members of the committee preferred a 25 basis point cut and three preferred to hold rates at the current level.
SAA creditors meet as state money is still not forthcoming
The business rescue practitioners of SAA have convened a meeting of creditors as government still hasn’t provided at least R10 billion that is needed for its restructuring. The meeting will discuss funding and the future of the company.
Foschini gets go-ahead to buy Jet stores
The Foschini Group received approval from the Competition Commission to take over some Jet stores from Edcon.
The approval is subject to Foschini retaining at least 381 Jet stores and the employment of at least 4664 Jet employees.
Foschini also undertook to employ Edcon employees if vacancies arise in the Jet business for the next three years, and to procure local goods for the stores.