South Africa

South Africa’s central bank paused its easing cycle while it assesses the impact US President Donald Trump’s trade policies may have on inflation, Bloomberg News reported. The monetary policy committee maintained the benchmark interest rate at 7.5%, Governor Lesetja Kganyago told reporters at a briefing north of Johannesburg on Thursday. That matched the median estimate of 21 economists in a Bloomberg survey, in which 14 predicted the hold and the rest expected a cut.

South Africa's largest airline, FlySafair, has been given a year to reduce its foreign shareholding, or it risks having its license suspended, Business Insider Africa reported. If the airline fails to meet the deadline of a year from Jan. 23, it will be required to appear before the Domestic Air Services Council to explain why its license should not be revoked, according to a statement from the Department of Transport on Wednesday.

Military company Paramount Industrial Holdings (PIH), a part of the Paramount group of companies, has filed for business rescue amid legal disputes within another division of the Paramount group. Despite this, other subsidiary companies in South Africa are expected to continue operating normally, Military.Africa reported. The PIH board made the decision to enter business rescue on 11 November.

South Africa’s State airline is being approached by banks keen to discuss lending the carrier money, aided by a turnaround in the company’s finances, interim Chief Executive Officer John Lamola said, Bloomberg News reported. South African Airways (SAA) needs to finance a growth strategy that envisages its fleet more than doubling to 43 planes over the next five years. The company is constrained from seeking funds from the government, which is limiting bailouts to state-owned enterprises as it focuses on stabilising the nation’s debt.

South Africa’s central bank lowered borrowing costs for a second successive meeting and said its modeling showed further cuts were in the offing, but that the outlook remains highly uncertain, Bloomberg News reported. Policymakers cut the benchmark interest rate by 25 basis points to 7.75%, Governor Lesetja Kganyago told reporters at a briefing north of Johannesburg on Thursday. That was in line with expectations of all 20 economists in a Bloomberg survey.

South Africa’s Treasury plans to withhold funds from five municipalities next month over their unpaid water bills, part of an effort to compel local governments to pay for basic services, Bloomberg News reported. The Treasury will invoke a law allowing the authorities to block the payment of a so-called equitable share of money that’s allocated to municipalities to pay for services including water and electricity, according to a presentation by the department in parliament on Tuesday.

South Africa’s government is still considering whether to adopt a new fiscal anchor that will provide a sustainable long-term path for public finances, despite opposition from within the country’s biggest political party, Bloomberg News reported. The National Treasury said it is consulting with academics, international experts and other interested parties “to make inputs on fiscal-anchor policy options.” A discussion document will be released by the end of March, according to the budget update released in Cape Town on Wednesday.

South Africa’s central bank cut interest rates for the first time in four years and signaled a more optimistic outlook for inflation, Bloomberg News reported. The monetary policy committee reduced its benchmark rate by 25 basis points to 8%, Governor Lesetja Kganyago told reporters at a briefing north of Johannesburg on Thursday. That matched the median estimate of 24 economists in a Bloomberg survey. Only one analyst had penciled in a 50 basis-point cut.