Lack of interest rate cut will see suppressed consumer spending
DURBAN- The upcoming festive season would likely see suppressed consumer spending in South Africa.
Mancosa based economics academic Jithendra Maharaj said the South African Reserve Bank’s (Sarb) decision to keep the bank repo rate unchanged at 6.5% would appear to be in response to Moody’s latest downgrading and an attempt by the Sarb to prevent further decline in the country’s credit rating.
“The repo rate should have rather been decreased so that it would have stimulated consumer spending, especially during the coming festive season,” said Maharaj.
Source: iol.co.za
