Economy / General

SARB delivers a 25bp cut and hints at a lower inflation target

Momentum Investments have released their macro research note titled “SARB delivers a 25bp cut and hints at a lower inflation target” prepared by the Momentum Macro Research Team.

PPS Investments: MPC Commentary

The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) lowered the Repo policy rate by 0.25% at today’s MPC meeting, from 7.5% to 7.25%. The decision to cut rates was unanimous, with one MPC member even voting a 0.5% cut.

Some well-timed relief in the form of an interest rate cut

The Monetary Policy Committee (MPC) announced today that interest rates will drop by 0.25%, bringing the repo rate to 7.25% and the prime lending rate to 10.75%. This comes amid persistently low inflation and muted economic growth.

Headline inflation remained below the lower limit of the inflation target band