Shortly after monetary policy became less restrictive in September 2024, a host of macroeconomic indicators took a decisive turn for the better. As the record-high prime lending rate of 11.75% began to fall, banks' impairments as a percentage of total assets also declined.

Higher long-term interest rates are starting to put pressure on the fiscal affairs of several countries, with the premium of French 10-year government bond yields over safe-haven German yields rising to above 150 basis points on 2 October, the highest level in 15 years.

After a four-week reprieve from military strikes in the Middle East, the end of August witnessed another flare-up in hostilities between the US and Iran, leading to another spike in oil prices. Despite the remarkable strength of South Africa’s currency, this contributed to a further rise in domestic fuel prices in September, which is bound to stall the recent downward trend in the consumer price index (CPI).