SARB cuts Interest Rates further
In a well suggested and highly anticipated move, the Monetary Policy Committee of the South African Reserve Bank (SARB) cut the repo rate by 100 basis points, or one percentage point. This brings SA’s repo rate to 4.25%.
Reserve Bank governor, Lesetja Kganyago, said the decision by the bank’s Monetary Policy Committee was unanimous. The cut will go into effect on April 15. Tuesday’s announcement was the second major cut in less than a month, after the central bank cut the rate by one percentage point in mid-March. In mid-January, meanwhile, the bank lowered the rate from 6.5% to 6.25%. “The May 2020 meeting of the MPC was moved earlier and took place today [Tuesday],” the bank said in a tweet, where it also announced the rate cut.