South African Reserve Bank (SARB) governor, Lesetja Kganyago says he does not agree to the idea of lowering the interest rate to near zero percent.
South African Reserve Bank Governor Lesetja Kganyago says the country’s financial system is facing a combined supply and demand shock in the wake of COVID-19. He was speaking at a discussion forum on the socio-economic impact of COVID-19 on South Africa.
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 has cut the repo rate by 50 basis points following its Monetary Policy Committee meeting. This takes the benchmark rate to 3.75%, the lowest level since the repo was introduced in 1998.
South African Reserve Bank Governor, Lesetja Kganyago, says the current low inflation is expected to bring about a cut in the petrol price in the near future.