Repo rate cut by 100 basis points
Written by Lethiwe Mdluli on 20 March, 2020
Economists have welcomed the South African Reserve Bank’s decision to cut the repo rate by a full percentage point.
The governor of the central bank, Lesetja Kganyago, announced this afternoon that the rate will now be 5.25 percent.
Economist Sifiso Skenjana told the media that this could not have come at a better time.
Meanwhile Kganyago, says supply chain disruptions due to the coronavirus pandemic will have a negative impact on domestic economic growth forecasts.
Kganyago had been briefing media on the Monetary Policy Committee’s repo rate decision for the year in Pretoria.
He says low inflation has created space for the monetary policy to respond to deteriorating economic conditions.
By: Gagasi FM News