SA Reserve Bank cuts interest rates by a further 1 percentage point
JOHANNESBURG – In the wake of the national disaster that South Africa finds itself in because of the coronavirus outbreak in the country and globally, the Monetary Policy Committee (MPC) of the South African Reserve Bank decided (SARB) to cut the repo rate by 100 basis points.
Kganyago said at his previous announcement, “The implied path of policy rates over the forecast period generated by the Quarterly Projection Model indicated three repo rate cuts of 25 basis points each in the second and fourth quarter of 2020, as well as in the third quarter of 2021. Monetary policy can ease financial conditions and improve the resilience of households and firms to the short-term economic implications of Covid-19. Our decision and its magnitude seeks to do this in the near term.”
The Monetary Policy Committee (MPC) of the @SAReserveBank has decided to cut the repo rate by 100 basis points. This takes the repo rate to 4.25% per annum.
— SA Reserve Bank (@SAReserveBank)
April 14, 2020
Source: iol.co.za