The Money Show SARB cuts rates, targets 3% Inflation, BASA webinar helps small brewers tap into growth
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Jul 31, 2025 David Shapiro, a seasoned stockbroker and global equity strategist, shares insights on navigating investment strategies amid trade tensions. Charlene Louw, CEO of the Beer Association of South Africa, discusses the challenges smaller brewers face and highlights their recent webinar aimed at fostering growth through compliance and networking opportunities. The conversation delves into the rise of premium and non-alcoholic beverages, as well as the impact of SARB's interest rate cuts on consumer behavior and economic dynamics in South Africa.
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SARB Lowers Inflation Target to 3%
- The South African Reserve Bank cut rates by 25 basis points and shifted inflation targeting to the lower 3% threshold.
- This unilateral move aims to lower inflation expectations and support further interest rate cuts.
SARB's Ingenious Inflation Strategy
- The SARB's unilateral inflation target reset is a clever strategy overriding Treasury's hesitation.
- It could enable a more dramatic inflation reduction and larger interest rate cuts, benefiting the economy.
Impact of U.S. Tariffs on Citrus
- A 30% U.S. tariff on South African citrus would devastate exports and job security.
- Diversifying markets, including Asia and Africa, is a slow but necessary response to the tariff threat.