The South African Reserve Bank (Sarb) announced a further 100 basis point cut to the repo rate on Tuesday
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The South African Reserve Bank (Sarb) announced a further 100 basis point cut to the repo rate on Tuesday, following an emergency meeting of its Monetary Policy Committee (MPC) in the wake of a worsening economic fallout from the global Covid-19 pandemic.
This brings the repo rate down to 4.25%, its lowest level since 1973. It will result in SA’s prime commercial lending rate dropping from 8.75% to 7.75%.
The move comes less than a month after the Sarb announced a 100 basis point cut at its last MPC meeting on March 19.
Kganyago said in light of this the Sarb now expects South Africa’s 2020 GDP to contract by 6.1%, compared to the -0.2% expected just three weeks ago (at its last MPC meeting in March)
This brings the repo rate down to 4.25%, its lowest level since 1973. It will result in SA’s prime commercial lending rate dropping from 8.75% to 7.75%.
The move comes less than a month after the Sarb announced a 100 basis point cut at its last MPC meeting on March 19.
Kganyago said in light of this the Sarb now expects South Africa’s 2020 GDP to contract by 6.1%, compared to the -0.2% expected just three weeks ago (at its last MPC meeting in March)
