Quote of the Month – Navigating 2021
“Stimulus measures, pent up demand and supply constraints as a result of the pandemic could together see a rising tide in inflation in the developed world that, if left unchecked, could become the world's next big problem.
South Africa, as a small open economy, would undoubtedly be affected too. Still, for now, inflation remains under control, and there is a chance that the South African Reserve Bank may take the opportunity to reduce the repo rate again in the first half of 2021. With the country facing a bumpy road in 2021, we could certainly do with any help we can find to buoy the domestic economy during the year ahead.
Much will depend on authorities making wise choices globally – on vaccine distribution and economic policies. In this environment, it will be important to see through the noise and remain well-diversified so that your investments can cope with different scenarios because we are not out of the woods yet.”
Provided by Vaal Triangle Insurance
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