South African Repo Rate Slashed 100 Basis Points
March 19, 2020
The latest and largest rate cut today has been a 100-basis point reduction in the South Africa Reserve Bank’s repo rate to 5.25%. This follows a 25-basis point cut in January and an initial 25-bp cut in July 2019. The repo rate had been as high as 7% from March 2016 through July 2017. Ahead of the Covid-19 pandemic, central bank officials now foresee a 0.2% contraction of GDP this year in South Africa followed by 1.0% positive growth in 2021, but such forecasts are fraught with uncertainty.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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