South African Reserve Bank cuts repo rate by 25 basis points

John Perlman interviews Stephen Grootes, 'The Money Show' Presenter.

Listen below:

The South African Reserve Bank's Monetary Policy Committee has reduced the repurchase rate by 25 basis points to 7.5%.

Governor Lesetja Kganyago announced the decision earlier today.

Grootes points out that the decision was split, with two of the six members of the MPC voting for an unchanged policy rate.

He adds that since the 25 basis point cut was widely forecast and anticipated, the market may have already priced in the change.

"We saw, in fact, some of the retail shares starting to improve in value yesterday."

- Stephen Grootes, Presenter – The Money Show

The rate reduction will take effect tomorrow, 31 January 2025.

Scroll up to the audio player to listen to the interview.