The Reserve Bank kept interest rates unchanged at the end of its Monetary Policy Committee meeting yesterday. However, following an acceleration in inflation to 4.4% in April, it said upside risks were emerging. That means the next move in lending rates could be an increase.

The SARB slashed its repo rate by 300 basis points last year to help cushion the blow of Covid-19 to consumers and the economy. It hasn't, however, resulted in runaway spending, with retail sales declining by 2.5% in March.

Massmart and Woolworths were out with updates yesterday. Massmart's sales have recovered from last April's hard lockdown, when it wasn't able to sell much at all. But they are still down on its 2019 numbers. Woolworths has reported improved trading and its annual results will also get a kicker from the sale of properties in Australia.

Tiger Brands also reported back yesterday, saying that the upward momentum experienced in the first quarter of its financial year petered out in the second three months as consumers remained under pressure.

Also today, Quantum Foods had a challenging start to its financial year due to a sharp rise in input costs, and Netcare will report a decline in earnings when it reports back on Monday.

It's the end of the week, so all the latest M&A news from DealMakers too.

I hope you have a good weekend.

Stephen Gunnion

Managing Editor, InceConnect