South Africa’s two-pot retirement system: how global trends are influencing local reforms
South Africa’s innovative two-pot system, blending immediate access with long-term retirement savings, is inspired by global best practices. There’s comfort in knowing we’re not the first; we’re following a long tradition of similar systems, taking poignant learnings from each.
What if the plane we’re trying to land is only a connecting flight?
In this article, we explore the different types of economic landings that can occur. We also examine historical trends in cutting cycles led by the US Fed and SARB, and the intricate relationship between their respective monetary policies. Whether it’s a soft, hard, or no landing scenario, understanding these dynamics is crucial for navigating the remainder of 2024 and what lies ahead.
August 2024 Economic Review
Data shows that inflation in the US dropped below 3% in July, getting closer to their 2% target. The unemployment rate in the US rose according to July data. The UK economy grew in the first and second half of 2024 after declining in the third and fourth quarter of 2023. Locally, SA’s real interest rate reached the highest level in 18 years, with considerations for the South African Reserve Bank (SARB) to lower rates for the month.
Monthly Market Highlights – August 2024
South Africa’s inflation eased to 4.6% in July, its lowest level in over three years, which has boosted consumer spending power. This marks a significant moderation in price pressures, suggesting the worst of the inflationary spike is behind us.