Sarb sees ‘strongest effects’ of rate cuts next year

The “strongest effects” of the South African Reserve Bank’s decision to cut lending rates to record lows — a response to the Covid-19 pandemic — will be felt only next year, the bank said on Tuesday.

“Based on recent rate cuts being concentrated in the first half of 2020, with the repo rate falling by 125 basis points in the first quarter and 150 basis points in the second, the strongest effects on credit are likely to arrive around mid-2021,” the bank said in its bi-annual Monetary Policy Review.


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