SA Reserve Bank's interest rate cut not surprising, says economist
SARB MPC’s decision to cut the repo rate from 8% to 7,75% was unanimous.
FILE: South African Reserve Bank (SARB) Governor Lesetja Kganyago. Picture: Karabo Tebele/702
CAPE TOWN – The South African Reserve Bank (SARB)’s Monetary Policy Committee (MPC) decision to cut the repo rate by 25 basis points is not surprising
This is the word from Sanlam Investments’ Chief Economist, Arthur Kamp.
SARB MPC’s decision to cut the repo rate from 8% to 7,75% was unanimous.
The governor of the SARB, Lesetja Kganyago, said 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 future.
Kamp cited this as 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 interest rate decisions and global financial conditions and ultimately the Rand, these would need to be taken into account in our own interest rates decisions."