SARB rate call: hike looked likely, sharp move would be a surprise
Ahead of Thursday’s Reserve Bank decision, economists widely expected a 25-basis-point hike after June inflation surprised to the upside at 5.0%, the highest since June 2024, driven by fuel and Middle East-linked oil prices. A 50-basis-point move was seen as possible but would be a surprise rather than the base case, given the SARB’s pre-emptive hike already made in May.
Cape Town ranks as a cheap city for beer and cigarettes
Deutsche Bank’s annual “Oasis Index”, tracking the cost of five beers and two packs of cigarettes in cities worldwide, placed Cape Town among the world’s most affordable spots, with the ten cheapest cities predominantly Asian, South American, and African, led by Shanghai at $10.40. By contrast, Sydney and Melbourne top the list as the most expensive, with sin taxes pushing costs as high as $111 in Sydney.
Treasury defends R13.5bn municipal funding freeze
National Treasury’s senior legal adviser argues the department acted lawfully in temporarily withholding R13.5bn from 69 municipalities over poor financial management, after the Financial and Fiscal Commission questioned whether the move needed parliamentary approval. Treasury says it notified the Speaker and NCOP chair to allow oversight to proceed, with affected municipalities, including Johannesburg, which lost R3.6bn, cited for years of audit failures and MFMA non-compliance.
Gayton McKenzie fights to halt Central Karoo forensic probe
McKenzie has asked the Gauteng High Court to stop a Western Cape forensic investigation into R3-million raised through his 2022 gala dinner, arguing the probe’s legal authority lapsed after exceeding a 90-day statutory limit. Western Cape MEC Anton Bredell is opposing the bid, calling it the latest in a series of unsuccessful attempts by McKenzie to avoid cooperating after losing appeals all the way to the Constitutional Court.
Mapisa-Nqakula pleads not guilty as corruption trial opens
Former National Assembly Speaker Nosiviwe Mapisa-Nqakula pleaded not guilty to 12 counts of corruption and money laundering, with the state alleging she solicited R4.55 million in bribes from SANDF contractor Nombasa Ntsondwa-Ndhlovu between 2016 and 2019, of which R2.15 million was allegedly paid. She admitted renovations were carried out at her home during her tenure as defence minister but denied soliciting or accepting any bribes, as UDM leader Bantu Holomisa testified first and Ntsondwa-Ndhlovu is expected to take the stand next.
Sources: News24, BusinessDay, Daily Maverick, The Citizen