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Tag: South African Reserve Bank (SARB)
Since 2017, Interbank Offered Rate (IBOR) reform has been on the cards in many markets around the world. The use of the London Interbank Offered Rate (LIBOR) as a benchmark, is set to be discontinued.
1 March 2021 marks a watershed for retirement funds in South Africa. Most are focussed on the annuitisation rules that have been pending since 1 March 2015, otherwise known as 'T-day'. While these reforms are significant, retirement fund members need to understand them in the grand scheme of things.
The envisaged future relaxation of the prohibition on 'loop structures' will be accompanied by amended tax laws, but current proposals are likely to result in more tax on certain structures. National Treasury has proposed a number of amendments to tax legislation as a result of the potential future relaxation of the SA Reserve Bank's current prohibition on so-called 'loop structures'.
The South African Reserve Bank (Sarb) Monetary Policy Committee (MPC) kept interest rates steady at 3.5% at the scheduled September 2020 interest rate-setting meeting despite downwardly revised growth and inflation views. This decision tied in with the view of 15 out of the 25 analysts surveyed by Reuters, while we were one of the ten favouring a 25-basis point cut.
An interview with Jonty Leon, Legal Manager, Financial Emigration, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing the Draft Tax Law Amendment Bill (TLAB) which contains a hidden announcement, which may prove to be the final straw for many ex-South Africans who still have retirement investments left in South Africa.
The Draft Tax Law Amendment Bill (TLAB) contained a hidden announcement, which may prove to be the final straw for many ex-South Africans who still have retirement investments left in South Africa. The TLAB seeks to legislate to prevent a South African who has exited South Africa’s tax base, to withdraw their retirement funds from South Africa, until an unbroken period of 3 years has passed where that person can prove non-tax residency.
Following the South African Reserve Bank’s (SARB) decision to cut its lending rate by 0.25%, we will be reducing our prime lending rate to 7% from 7.25% with effect from Friday 24 July. The recent FNB/BER Consumer Confidence Index revealed an alarming but understandable slump in confidence, which has not been seen since 1985.
A sharp fall in the rate of consumer price inflation has defanged what was initially paraded as 'aggressive' monetary policy action intended to stimulate the floundering economy. Given a muted inflation outlook, and the depressed economic setting, the question is not if the South Africa’s Reserve Bank’s Monetary Policy Committee (MPC) will cut interest rates this week, but rather by how much?
The South African Reserve Bank (SARB) Monetary Policy Committee (MPC) is meeting again - 21 July 2020 to 23 July 2020 - to discuss policy matters. The central bank lowered interest rates by a cumulative 275 basis points in the year so far, most recently making a 0.5 percentage point cut in lending rates on May 21.
The Supplementary Budget 2020 was tabled to Parliament on 24 June 2020 by South African Finance Minister Tito Mboweni.