South Africa Reserve Bank

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 […] More

Pessimistic Mood in the Marketplace

May 23, 2019

A protracted U.S.-Sino trade war looks increasingly unavoidable. No light can be seen at the end of the Brexit tunnel, and paralyzing tensions between the Trump White House and Congressional Democrats keep intensifying. Although a preliminary estimate that German GDP accelerated to 0.4% last quarter, the May IFO Institute index of Germany’s business climate produced […] More

South African Reserve Bank Tightens

November 22, 2018

The South African Reserve Bank surprised markets with an unexpected 25-basisĀ  point increase of the repo rate to 6.75% after their sixth and final planned policy review of 2018. This was the first rate change since a cut of 25 basis points last March. Officials want to head of rising inflation expectations amid inflation stubbornly […] More

South African Reserve Bank

May 24, 2018

A 25-basis point cut of the SARB repo rate to 6.50% in March had been the second such move since last July but was approved by only a thin 4-3 vote of the central bank’s monetary policy committee. Insofar as core inflation rose 0.4 percentage points in April to 4.5%, it was not surprising that […] More

South African Reserve Bank Repo Rate Kept at 6.75%

January 19, 2018

The main South African central bank interest rate was reduced 25 basis points six months ago to its current 6.75% level. This move represented a directional shift. Six prior increases from June 2014 until March 2016 had raised the rate from 5.0% to 7.0%. The result of this week’s first policy review of 2018 was […] More