The South African Reserve Bank (Sarb) cut its repo rate by another 50 basis points to 3.75%
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Mpho Molopyane, Rmb Sa Economist talk to Gugu Mfuphi about The South African Reserve Bank (Sarb) cut its repo rate by another 50 basis points to 3.75% on Thursday, taking the prime commercial lending rate to 7.25%.Sarb governor, Lesetja Kganyago, announced the decision following the bank’s 3-day Monetary Policy Committee (MPC) meeting in Pretoria.
This takes the bank’s total repo rate cuts this year to 275 basis points or 2.75%, as it slashes rates in the face of Covid-19 economic fallout. The latest MPC meeting follows the bank calling an emergency MPC in April, where it announced a surprise 100 basis points cut.
During his MPC speech on Thursday, Kganyago noted that since the April MPC meeting, the Covid-19 pandemic continued to spread globally, with wide-ranging and deep social and economic effects
This takes the bank’s total repo rate cuts this year to 275 basis points or 2.75%, as it slashes rates in the face of Covid-19 economic fallout. The latest MPC meeting follows the bank calling an emergency MPC in April, where it announced a surprise 100 basis points cut.
During his MPC speech on Thursday, Kganyago noted that since the April MPC meeting, the Covid-19 pandemic continued to spread globally, with wide-ranging and deep social and economic effects
