Sarb almost didn’t cut interest rate (3 out of 7 members wanted it unchanged)

Reserve Bank Governor Lesetja Kganyago. Picture: Renart Toerien/EWN.

The repo rate will fall by 25 basis points, to 6.5%, on Thursday, 29 March.

South African Reserve Bank (Sarb) Governor Lesetja Kganyago made the announcement on Wednesday.

The prime lending rate, which is the interest rate charged by banks to most customers, is now at 10%.

The decision to cut interest rates was not an easy one; three out of seven Monetary Policy Committee members voted to keep the repo rate unchanged.

The Money Show’s Bruce Whitfield interviewed Nedbank economist Busisiwe Radebe.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

…there are still some risks out there…

Busisiwe Radebe, Nedbank

The Reserve Bank prefers inflation around the middle of the target [i.e. around 4.5%]…

Busisiwe Radebe, Nedbank

Further on in the year, you see an uptick in inflation…

Busisiwe Radebe, Nedbank

He’s trying to prime us for the risks about to come…

Busisiwe Radebe, Nedbank

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