South African Finance Minister Pravin Gordhan may push back next year’s budget deficit target for the second time in four months as economic growth fails to meet projections and cuts into tax revenue.
South African credit expanded at the fastest pace in more than 2 1/2 years in January, easing pressure on the central bank to provide more stimulus to the economy.
South African credit growth accelerated at the fastest pace in more than three years in March as the central bank left borrowing costs unchanged at a 30-year low, boosting lending in Africa’s biggest economy.
South African economic growth was probably little changed in the third quarter as a surge in the value of the rand curbed manufacturing, while consumer spending rebounded from last year’s recession.
South African inflation accelerated to a 15-month high last month, bolstered by rising fuel and food costs, increasing pressure on the central bank to raise interest rates from a 30-year low.
South Africa’s inflation rate fell to 3.5 percent in December as a rally in the rand limited import costs, allowing the central bank to keep interest rates at a 30- year low.