Political economist Lumkile Mondi says while a repo rate cut is a relief for consumers, more action is needed.
The South African Reserve Bank has reduced the repo rate by 100 basis points, bringing it to 5.25%.
Governor Lesetja Kganyago announced the decision on Thursday.
The repo rate is the rate at which the central bank lends money to commercial banks.
I think it is generous but it is not going to go very far in terms of what the economy requires.— Lumkile Mondi, Political economist
Many South Africans are at risk of losing their jobs in the next few days or weeks given the impact of COVID-19.— Lumkile Mondi, Political economist
We want government and the banks to come to the party, specifically with banks giving some leeway around some of the repayments which they expect, particularity to the vulnerable workers, those in the servicing sector and those working in companies that are impacted upon by this crisis due to them not earning higher incomes than they would under normal circumstances.— Lumkile Mondi, Political economist
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