Kganyago: MPC won’t hesitate to act if economy worsens

The central bank has announced an emergency repo rate cut of a hundred basis points to 4.25%.

FILE: South African Reserve Bank Governor Lesetja Kganyago. Picture: @SAReserveBank/Twitter

JOHANNESBURG - Reserve Bank Governor Lesetja Kganyango said the monetary policy committee (MPC) would not hesitate to act again should the country's economic environment worsen.

The central bank has on Tuesday announced an emergency repo rate cut of a 100 basis points to 4.25%.

This follows an interest rate cut of one percentage point last month.

Kganyago said job losses remained a key concern and the sooner the coronavirus was beaten, the better.

But he said inflation was under control and should remain in the bank's target range of 3% to 6% for now.

The price of Brent Crude has also seen lower fuel prices and Kganyago said prices looked to remain low.

However, the governor said the country's economy was under pressure with growth forecast at minus 6.1% for this year and the bank would continue to monitor the situation very closely.