A taxi roll-over on a dirt road in KwaZulu-Natal has left one man dead and eleven others injured, while a second accident saw two men injured after a bakkie and truck collided.Continue reading
The community of Bonteheuwel in Cape Town is reeling from yet another murder in the suburb, after a man’s body was found in a street with a stab wound.Continue reading
Workers at the beleaguered services firm African Global Operations – formerly known as Bosasa – have been shut out of their offices as confusion over their futures continues to grow.Continue reading
The judicial commission of inquiry into state capture continues with testimony from Eskom board chairperson Jabu Mabuza, as investigators delve into alleged corruption at the power utility.Continue reading
The South African Reserve Bank proposes a methodology to determine systematically important banks in South African: invitation to comment on the discussion paper.
A new video clip has provided a rare glimpse of elusive and infamous Bosasa boss Gavin Watson in action, berating his staff for mistakes that nearly led to the company losing an R800m tender.Continue reading
An official at Sasol Secunda has accused the petrochemical giant of intentionally polluting the Vaal River.Continue reading
Police Minister Bheki Cele has revealed why he could not back IPID head Robert McBride in a submission to Parliament’s Portfolio Committee on Police.Continue reading
South Africa faces an impending food security crisis if there isn’t urgent action to correct unsustainable practices, says environmental organisation World Wide Fund for Nature.Continue reading
The global financial crisis (GFC) saw real interest rates fall to all-time lows as central banks aimed to stimulate economic activity. The effectiveness of such low real rates depends, to a large extent, on the neutral real interest rate — popularly referred to as r-star. Monetary policy is considered expansionary when real interest rates are below r-star, and vice versa. However, the challenge arises from the fact that r-star is unobservable. This paper estimates r-star in the spirit of the popular Laubach-Williams (LW) methodology, but adapts their approach to capture the dynamics of a small open economy. This is achieved by incorporating additional drivers of the neutral rate, such as domestic net savings and investment, South Africa’s country risk premium, and the potential growth rate of our trading partners. In addition, foreign linkages like the exchange rate and international commodity prices are included to capture the impact of developments in the rest of the world on South African growth and inflation. The results suggest that South Africa’s r-star has fallen less than in advanced economies — from an average of 4.4 per cent from 2000 to 2006 to 1.9 per cent in 2017Q4.