29 Quotes by Colen Garrow

Welfare and dependency grants, personal income tax relief, and cuts in those costs which would make housing more affordable for middle and low income earners are likely to buoy consumption expenditure, and manufacturing.

From this perspective, it is somewhat disappointing that corporate tax remains unchanged at 29% and that STC also remains unchanged at 12.5%.

Manufacturing will be under pressure because of currency strength. It will hold the sector back and (keep) growth from reaching its potential level.

Manufacturing is not the only supply sector battling a strong currency. Mining is being crippled by a similar problem.

While an environment in which the rand remains strong is always appropriate for something more creative, the National Treasury is unlikely to deviate from its consistent path of removing exchange controls gradually.

While it remains manageable, it can be argued that it is the rate at which debt levels are growing that may cause no further stimulus from the central bank.

What the bank is more likely to do (than cut rates) is intensify its moral suasion in support of a more competitive exchange rate.

Another issue likely to resurface is the matter of 'a more competitive exchange rate', deciphered as code for the rand to weaken. Moral suasion such as this may be good for export-biased manufacturers, but will hardly be considered good for observers of inflation, or long-term interest rate markets.

Fiscal relief may be the ammunition necessary to drive consumption expenditure but with it not being accompanied by aggressive monetary relief, growth in household consumption expenditure is showing signs of consolidation.