South African Reserve Bank (Sarb) Governor Lesetja Kganyago announced today the bank's latest decision on interest rates following the three-day meeting of the monetary policy committee (MPC)
The Bank reduced the repurchase rate by 25 basis points to 6.25% per annum .
There are a number of reasons that supported a cut. We do not have inflation problems for now. Growth was expected to improve but now expectations for growth have been reduced. Growth prospects have been largely driven by Eskom's inability to provide electricity to SA corporates.— Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments
The Reserve Bank does inflation targeting to make sure that prices are stable in the interest of balanced and sustainable economic growth. We need 2,6% upwards, sustainably. We are nowhere close to that. We are facing an economic crisis.— Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments
Potentially this is the first of two cuts this year but the Reserve Bank is likely to wait and see what happens in the budget and what Moody's is going to do - and the reaction of financial markets to that.— Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments
Listen to the sound clip below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
Recommendedby NEWSROOM AI
Deep Fakes and bigwigs: Bruce Whitfield interviews several captains of industry at Davos 2020.
If Jeff Bezos and Bernard Arnault – the world’s two richest men – sat on their wealth piled up in $100 bills, they’d be in space!
The pick of the day's crop as chosen by Caroline Cremen, Portfolio Manager, Adviceworx.
Macfarlane Moleli tells The Money Show how he structures his life and sets goals.
Khabazela shares some of the videos that went viral on Twitter and Facebook.
Cell C is pawning off its contract customers to Vodacom.