The SA Reserve Bank cut interest rates by 100 basis points as it dramatically revised the inflation and growth forecast
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The SA Reserve Bank cut interest rates by 100 basis points as it dramatically revised the inflation and growth forecast, saying GDP for the whole of 2020 would contract 0.2%.
The Bank decided to ease policy even after a recent sell-off in markets that pushed the rand to new lows of worse than R17/$ and 10-year bond yields to double digits.
The Bank now joins its peers in several countries who have injected various forms of monetary policy support into their economies in recent weeks — including the European Central Bank (ECB) and the US Federal Reserve — as the coronavirus continues to stalk its way around the globe bringing in its wake, a likely world-wide recession.
The Bank decided to ease policy even after a recent sell-off in markets that pushed the rand to new lows of worse than R17/$ and 10-year bond yields to double digits.
The Bank now joins its peers in several countries who have injected various forms of monetary policy support into their economies in recent weeks — including the European Central Bank (ECB) and the US Federal Reserve — as the coronavirus continues to stalk its way around the globe bringing in its wake, a likely world-wide recession.
