Reserve Bank cuts Repo Rate
The South African Reserve Bank has cut the repo rate by 25 basis points to 6.75%
Reserve Bank governor Lesetja Kganyago has announced that the repo rate will drop by a quarter of a percentage point to 6.75%. This means the prime lending rate drops to 10.5%.
Reserve Bank Governor Lesetja Kganyago attributed the cut to improved inflation outlook and the deteriorated growth outlook.
Kganyogo has warned that the reduction in interest rates will not provide a significant stimulus for economic growth. Kganyago says it's unclear where the drivers of growth will come from in the absence of credible structural policy initiatives to reduce uncertainty.
SABC Reporter Tsepo Mongoai reports
Some economists had speculated that the Reserve Bank would drop rates. Tsepiso Makwetla spoke to by Gina Schoeman Economist at Citi Bank.