A consumer economist at Liberty, Tendani Mantshimuli, says the Reserve Bank could have cut today’s repo rate more aggressively than the 25 basis points announced to counter the crippling effects of the COVID-19 pandemic.
The Reserve Bank’s Monetary Policy Committee has decided to cut the interest rate by 25 basis points to 3.5%.
Economists are divided over whether the Reserve Bank will further cut the repo rate or keep it unchanged when it announces its decision this week.
The South African History Archive (SAHA) has described the ruling by the Supreme Court of Appeal (SCA), which ordered the South African Reserve Bank to release certain apartheid-era records, as a victory for democracy.
South Africa’s central bank said on Wednesday the coronavirus had resulted in far reaching risks to financial stability and banks’ profitability would suffer, but lenders were in a good position to weather the storm.
Economist Jeff Schultz says the Reserve Bank has taken a cautious stance by cutting the repo rate by 50 basis points. The move has eased the repo rate to 3.7%.
The Reserve Bank is largely expected to cut the repo rate again this week. The Monetary Policy Committee is meeting and is expected to announce its decision on Thursday.
The Monetary Policy Committe (MPC) of the South African Reserve Bank has cut the repo rate by 100 basis points. This takes the repo rate to 4.25% per annum.
The Reserve bank has issued an instruction to the South African banking community against the payment of dividends to shareholders and bonus payments to executives this year.
The Reserve Bank has cut its growth forecasts for South Africa, predicting the economy could shrink by as much as 4% in 2020 due to the coronavirus pandemic, the national 21-day lockdown and the recent downgrades by credit rating agencies.