Lower Inflation Targets

Lower Inflation Targets  

Last week saw a further 0,25% interest rate cut, that was welcomed by markets and our currency.   

National Treasury knows that lower inflation and interest rates is best for the economy, and various news reports over the past few weeks has seen discussions taking place for even lower inflation and interest rates.

South Africa is likely to experience some short-term interest rate pain as the Reserve Bank’s target is set to be revised lower to around 3%, down from the current 3%-6% targeted band. 

Over time, this will be replaced with longer-term gains for the country as it will benefit from having an inflation target in line with developed economies, a stronger currency, and enhanced economic growth. 

However, there are still significant hurdles to overcome before this change is made official, with plans to lower the target being considered since 2000. 

This is feedback from Old Mutual chief investment strategist Izak Odendaal, who outlined some of the drawbacks and positives of a lower inflation target in a recent research note. 

The Reserve Bank has been making the case for a lower inflation target for years, with it releasing a white paper on the impact of a 3% target. 

Ultimately, the National Treasury determines the inflation target, and all the Reserve Bank can do is use its tools to achieve its stated target. 

For the further details published in the Daily Investor (Business Day) this week, you can read by clicking on this link below;

Interest rate pain for South Africa – Daily Investor

SARS Due Dates for February 2025 Income Tax Submissions

The South African Revenue Service (SARS) has announced the filing dates for tax season 2025, which will open on 21 July.

The filing season for provisional taxpayers will run from 21 July 2025 to 19 January 2026, which is also the filing window for trusts.

The tax season for individual taxpayers (non-provisional) will open 21 July 2025 and run to 20 October 2025 

Auto assessments will start rolling out two weeks before, starting 7 July 2025 and running through to 20 July.

Fairtree Wild Fig Multi Strategy Hedge Funds

I spent some time with the Fairtree Hedge Fund team this week and just wanted to share the performance of their flagship fund over the last 15 years.

If you are interested in having some more information about this fund please feel free to get in touch.

FRIDAY FOOD FOR THOUGHT