Charles Molele
The Monetary Policy Committee of the SA Reserve Bank has unanimously decided to cut the repo rate by 100 basis points, bringing the country’s repo rate to 4.25%, its lowest since 1973.
The decision to cut the repo rate follows the emergency meeting of the MPC, which was held in the wake of the economic fallout from the global Covid-19 pandemic, the biggest shock to the global economy since the Lehman Brothers’ bankruptcy.
Reserve Bank Governor Lesetja Kganyago said on Tuesday that the cut will come into effect on April 15.
Kganyago said since the last MPC meeting in March, the Covid-19 pandemic has spread globally and its impact is being felt through all economies.
“Current estimates from the IMF show global growth contracting this year by about 2.9%. Economic contractions are expected to be deepest in the second quarter of 2020, with some recovery expected in the
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