Positive trends to aid consumers: Old Mutual
More relief for hard-hit consumers forecast as interest rates fall and rand strengthens
Positive trends in the economy outweigh the negative and more relief for consumers under pressure is on the way, Old Mutual CEO Iain Williamson told Business Times at the insurer’s 2024 interim results presentation in Cape Town on Thursday.Williamson said while economic growth remained modest and consumers faced the risk of a double-digit electricity tariff hike, positive developments such as the strengthening of the rand, last week’s repo rate cut and improvements in power supply were positive signs."There could well be a one-off thing [or disruption] like that can come along and almost sideswipe the continuing improvement in general consumer health, but I don’t underestimate the amount of stimulus that will come."Let’s say top-to-bottom, the rate-cutting cycle ends up being 1.5%. So that’s very material. That would probably swamp most other things that come along in the meantime. The rand is also strengthening ... fuel prices are going to come down even more, which is likely to ...
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