As the South African Reserve Bank’s Monetary Policy Committee (MPC) gears up for its meeting this Thursday, market watchers expect a potential 25 basis point rate cut amid stabilised domestic inflation and a stable rand, even as global uncertainties continue to cast their shadow.

Much is said about the decline of active investing; far less is said about the risks and shortfalls of a passive investment approach. Today’s markets could deliver the wake-up call.

Ané Craig, Fund Manager at PSG Asset Management says, although we expect investors to benefit from continued positive market dynamics locally, we also anticipate volatile returns over the year given an unpredictable global backdrop and heightened sensitivity to news flow. Risk management will therefore be key – but an over-reliance on volatility indicators in isolation could be misleading.

Discover how South Africa’s latest Budget balances fiscal consolidation, economic growth, and coalition politics. Investment strategist Izak Odendaal unpacks VAT hikes, spending priorities, debt challenges, and global risks—offering key insights for taxpayers, investors, and business leaders.

Budget 2025 aims to balance fiscal consolidation with economic growth but introduces risks with VAT hikes and no inflationary tax bracket adjustments. While infrastructure investment is promising, concerns remain over execution, debt levels, and political uncertainty in the approval process.

Forvis Mazars experts analyse Budget 2025, highlighting VAT increases, stagnant tax brackets, and corporate concerns. While government spending rises, tax revenue measures aim to stabilise debt. Increased SARS funding is a positive step, but economic growth and fiscal sustainability remain key challenges.