There’s no need to cut interest rates to stimulate consumer demand or investment spending.

The real focus is going to be on whether it’s spent effectively. Obviously they (the government) feel that they have the capacity to do so.

We expect a neutral monetary policy stance in 2006, but much will depend on movements in the rand and the performance of mining and manufacturing.

Some industries will benefit from the anticipated strength in domestic spending and the planned acceleration in infrastructure spending, while others are expected to remain under strain from a strong rand and softer global growth.

Despite the strong domestic demand, high oil prices and rising food prices, inflation remains relatively benign at both producer and consumer levels.

Consumer spending is likely to ease off slightly as some saturation starts to set in, real income growth softens, higher debt burdens prompt a more cautious approach to spending and the positive wealth effects created...