By 3-2 Vote, South African Central Bank Officials Cut Repo Rate by 25 Basis Points

July 23, 2020

The fifth cut of the South African Reserve Bank repo rate this year brings the total drop of 2020 to 300 basis points. A released statement expects one more 25-bp reduction to be made around the final quarter of the year.  The projected contraction of real GDP was revised a touch higher to 7.3%. “economic contraction and slow recovery will keep inflation well below the midpoint of
the target range for this year.” Inflation is contained in the low 3% range. “In addition to
continued easing of interest rates, the SARB has relaxed regulatory requirements on
banks and has taken important steps to ensure adequate liquidity in domestic markets.”

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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