JSE closes higher as retailers rally while property stocks retreat on rate decision
The JSE closed a little higher on Thursday, as retailers and banks rallied on the Reserve Bank’s decision to keep the repo rate on hold at 6.75%. The tone of speech by Bank governor Lesetja Kganyago was more dovish than that following the previous meeting in November. Property stocks were the biggest losers on the day, with investors in the sector describing the Bank’s decision as disappointing. "With the improvements in the currency and stability of the consumer inflation rate within the Reserve Bank’s own target range, the time is right for a rate cut to stimulate the economy and property market," said Seeff Property group head Samuel Seeff. Kganyago painted a positive picture of inflation over the next few years. The Bank revised its consumer inflation forecast downwards for 2018 and 2019, to 4.9% and 5.4%, respectively, from 5.2% and 5.5%. The Bank maintained its forecast of three rate increases of 25 basis points by the end of 2019, as indicated previously, but now described th...
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