100 Basis Point Rate Cut in South Africa
April 30, 2009
The Reserve Bank of South Africa cut its benchmark policy interest rate to 8.5% from 8.5%. The rate has been reduced from 12% at the start of December. A statement released by monetary authorities projects in-target inflation of 5.4% by 4Q10 versus 8.5% currently because of the “severe synchronized downturn in international and domestic economic conditions.” Today’s PPI report showed a greater-than-expected 2-percentage point decline in the on-year comparison to 5.3%. Administered price hikes have been the main upside factor affecting inflation, but risks going forward lie mostly to the downside.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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