Forecast of further interest rate cuts ahead good news for struggling South Africans, says economist
The central bank's monetary policy committee's decision to cut the repo rate from 8% to 7.75% was unanimous.
South African Reserve Bank Governor Lesetja Kganyago. Picture: @SAReserveBank/X
CAPE TOWN - Sanlam Investments' chief economist, Arthur Kamp, said that the 25-basis points repo rate cut came as no surprise.
The central bank's monetary policy committee's decision to cut the repo rate from 8% to 7.75% was unanimous.
South African Reserve Bank Governor Lesetja Kganyago said that the committee agreed that reducing the level of policy restrictiveness was still consistent with achieving the inflation target.
He added that the forecast sees rates easing further in the future.
Kamp said this was good news for struggling South African consumers.
"Although we do need to remain cognisant of potential risks from geo-political developments or any changes to potential aspects of US economic policy, if those changes feed through into Fed interest rate decisions and global financial conditions and, ultimately, the rand, these would need to be taken into account in our own interest rate decisions."