South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its January 25th, 2024, meting as widely anticipated. Rates remain at their highest since 2009. The bank highlighted the persistence of inflation risks while emphasizing a balanced evaluation of risks to medium-term growth. The SARB noted that the return of inflation to the target has been slow, despite the expected gradual moderation. Headline inflation fell for a second month to 5.1% in December from 5.5% … Continue reading “South Africa Leaves Interest Rates at 8.25%, Rand Falls Rallies with Delayed Rate Cuts”

Saudi Aramco Profits Fall Along with Lower Oil Production, Prices and Margins

The Kingdom of Saudi Arabia controlled Saudi Aramco Oil reported on Monday second quarter earnings of 112.81 billion Saudi riyals, roughly $30.08 billion down from $48.44 billion in the same period last year. The result came in slightly above the $29.8 billion expected. Aramco’s profit was affected by weakening refining and chemicals margins with the lower oil prices in the quarter. In 2022 the oil giant earned $US161 billion, the highest-ever recorded annual profit by a publicly listed company drew … Continue reading “Saudi Aramco Profits Fall Along with Lower Oil Production, Prices and Margins”

South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls

The South African Reserve Bank (SARB) kept its benchmark repo interest rate at 8.25% at its July 2023 meeting as markets had expected. The decision was split three members of the bank’s monetary policy committee voted for the pause, two advocated for a further increase of 0.25 percentage points. “Have interest rates peaked? The answer is a resounding no,” said Kganyago at a press conference. “Is this the end of the hiking cycle? No, it is not. It depends on … Continue reading “South Africa Leaves Interest Rates at 8.25% in Split Vote, Rand Falls”

South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.25% at its May 2023 meeting. Markets had expected a smaller 25 bps increase. Policymakers cited concerns regarding the significant depreciation of the rand and the mounting pressures of inflation as key drivers behind the rate adjustment. The SARB also revised its inflation forecasts, with inflation for 2023 now projected to average 6.2%, up from the previous estimate of 6.0%. The move triggered … Continue reading “South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low”

South Africa Raises Interest Rates 50bps, Revises Inflation Higher

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.75% at its March 2023 meeting. Markets had expected a smaller 25 bps increase. The move triggered a surge in the rand , which extended earlier gains to rise nearly 2% against the dollar. It was the 9th consecutive rate hike since policy normalization started in November 2021, bringing borrowing costs to the highest since May 2009. Policymakers revised significantly upward headline inflation … Continue reading “South Africa Raises Interest Rates 50bps, Revises Inflation Higher”

Saudi Aramco Earned $US161 Billion in 2022, Highest Ever Publicly Listed Company Profit

The Kingdom of Saudi Arabia controlled Saudi Aramco Oil reported on Monday fourth quarter earnings of $US42.43 billion down from the previous quarter’s record high. For 2022 the oil giant earned $US161 billion, the highest-ever recorded annual profit by a publicly listed company drew immediate criticism from activists. Profits rose 46.5% over 2021 results of $US110 billion and $US49 billion in 2020. Aramco said its crude production was 11.5 million barrels a day in 2022 and said it hoped to … Continue reading “Saudi Aramco Earned $US161 Billion in 2022, Highest Ever Publicly Listed Company Profit”

South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors

The South African rand fell over 4% against the dollar to around 17.95 before paring losses to the lowest since November 4th, after “farmgate” rumors spread that President Cyril Ramaphosa was considering resigning after a panel report found preliminary evidence, he may have committed serious misconduct. Ramaphosa was due to address the nation on Thursday, Ramaphosa’s spokesman Vincent Magwenya said: “An announcement is imminent. … I can’t confirm the date and time, we will advise.” in response to Reuters. Farmgate … Continue reading “South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors”

South Africa Raises Interest Rates 75bps to Tame Inflation

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 75 bps to 7% at its November 2022 meeting, as widely expected. Prime is now at 10.5%. This was the 7th consecutive rate hike as the SARB tries to tame inflation expectations more firmly around the mid-point of the target band and achieve the inflation target in 2024. South Africa’s inflation rate unexpectedly rose to 7.6% in October from 7.5% in September. The decision was not … Continue reading “South Africa Raises Interest Rates 75bps to Tame Inflation”

Saudi Aramco Profit $US42.43 billion With Decline in Refining and Chemicals Margins

The Kingdom of Saudi Arabia controlled Saudi Aramco Oil reported on Monday third quarter earnings of $US42.43 billion down from the previous quarter’s record high. Profit was driven by higher crude-oil prices and volumes sold. Profits were up from up from $30.43 billion in the same period a year earlier. The result follows big oil rivals record profits. The UK’s BP, Netherland’s Shell, America’s ExxonMobil, the largest U.S. oil company, Chevron and Phillips 66 all crushed earnings on surging oil and gas … Continue reading “Saudi Aramco Profit $US42.43 billion With Decline in Refining and Chemicals Margins”

Sinopec Profit Soars to Record Despite China Oil Demand Near Two Low

China state-owned oil giant Sinopec (China Petroleum & Chemical Corp), the world’s biggest oil refiner by capacity, posted record first-half profits as higher global oil and gas prices outweighed a mixed market for fuel in China.  China’s oil demand fell to near a two-year low in July. The result follows strong first-half results came after fellow state-owned oil giants PetroChina Co. and Cnooc Ltd. profits. Sinopec is state owned by the Chinese Government Big oil rivals also delivered record profits. Saudi … Continue reading “Sinopec Profit Soars to Record Despite China Oil Demand Near Two Low”