The central bank is expected to reduce its repo rate by 100basis points to 8

The central bank is expected to reduce its repo rate by 100basis points to 8.5 percent on April 29, adding to 250 basispoints in cuts since December aimed at reinvigorating thedomestic economy and stave off a deep recession. While expected to ease more, targeted inflation remainsoutside the bank’s 3 percent to 6 percent band, suggesting anincreasing focus on growth worries. The weak activity of the final months of last year hasdeteriorated in 2009, highlighted by a record 15 percentyear-on-year fall in manufacturing production in February astrading partners’ soft economies cut into demand. Mining output is also shrinking and retail sales fellsurprisingly in February.

RATINGS DOWNGRADES? Credit ratings agency Fitch Ratings said the globaldownturn was having an increasingly negative impact on thedemand for local manufactured goods, leading to possiblecorporate downgrades. “When you combine the negative trends in publishedmanufacturing data and GDP forecasts with the expected adverseimpact on manufacturers’ credit metrics … further corporatedowngrades seem probable in the short to medium term,” saidRaymond Hill, head of Fitch’s Emerging Markets Corporate team. Auto component and vehicle producers as well as iron andsteel manufacturers were most at risk, he said in a report. Mnyande defended the bank’s inflation-targeting framework,but noted that the intensity of the global financial crisis wasforcing central banks to reconsider the links between financialstability and monetary policy. The issue had been discussed extensively at a recent seniormanagement strategy meeting of South Africa’s central bank. “Evidence presented at the meeting seems to suggest thatthere is a strong likelihood of some profound changes in theroles and responsibilities entrusted to central banks,regarding the stability of the financial system.” The success of inflation targeting was dependent onfinancial system stability, he said.

The central bank has jealously guarded its independence inthe face of criticism from the ruling African NationalCongress’ (ANC) trade union allies, who have demanded inflationtargets be scrapped. Election results after a Wednesday poll point to anotherbig win for the ANC. For full story, see [ID:nLN396718] Mnyande said although the deficit on the current accounthad narrowed in the fourth quarter of 2008, data for Januaryand February suggested the trade shortfall may have widenedagain. “In addition, the financing of the current account deficitremains a challenge considering the contraction in cross-borderlending in an environment characterized by uncertainty inglobal financial markets,” he said.

The gap on the current account dipped to 5.8 percent of GDPin the fourth quarter, from 7.9 percent previously, but theJanuary trade deficit jumped to a record 17.4 billion rand($1.95 billion). (For full Reuters Africa coverage and to have your say on thetop issues, visit: af.reuters /) ($1=8.906 South African rand) (Reporting by Gordon Bell; editing by Gary Crosse, BrianMoss) Currencies Bonds Global Markets. The game of cricket seems to have found a new saviour in the form of the IPL, or the 20-20 at least. Cricket was a sport played mostly by the commonwealth nations and held very little appeal outside the formerly British-ruled countries.Attempts made by the ICC to popularise the sport in the Americas were all but in vain The sub-continent is where the sport will always thrive And so, the BCCI seems to have found the answer.

The club version of the ‘gentleman’s game’ has been embraced by one and all.Cricket was always considered a boring and complicated sport having very little appeal with the masses. All of thatchanged in the late 1970s, when Kerry Packer introduced the 50-50 version, now known as the ODI. And now, the T20 format seems to have become the newest craze.In the late ’90s and early 2000s, The England Cricket Board was going through a crisis Attendance wasdwindling at boring county games. So,in order to attract the crowds, The ECB introduced T20 cricket with each playing only 20 overs.The trick worked, Crowds came back and attendance reached record highs.