The Reserve Bank this week unexpectedly cut the repo rate by 25 basis points to 6.25%, and some economists have noted that another rate cut later in the year cannot be ruled out entirely.
The SA Reserve Bank’s (SARB) monetary policy committee (MPC) met this week and unanimously agreed to cut the repo rate, which is the benchmark interest rate at which the SARB lends money to other banks. The cut was justified by the moderation in the inflation outlook and an improved inflation risk profile.
The medium-term forecasts for consumer inflation were revised lower to average 4.1% for 2019 (down from 4.2%) and 4.7% for 2020 (down from 5.1%) and 4.6% in 2021 (down from 4.7%). Economic growth projections were also lowered – down