The South African Reserve Bank cuts interest rates by another 100 basis points in less than one month

SOUTH AFRICA - Report 14 Apr 2020 by Iraj Abedian

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has once again cut the repo rate by 100 basis points from 5.25% to 4.25% today and effective from tomorrow, meaning the prime lending rate will decline from 8.75% to 7.75%. This follows closely the 100-bps cut during the MPC’s official meeting on March 19, i.e., less than one month ago. Today’s meeting was not one of the official annual six meetings. The Reserve Bank has thus far cut the benchmark interest rate by 225 basis points in 2020 on account of the Covid-19 pandemic. It further indicated that its forecast model suggests rate cuts of 25 basis points extending into Q1 2021. With consumer inflation rate currently at 4.6% y/y, it means that the current real interest rate (prime lending rate) is now 3.15%.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.