SA gets interest rate cut

The South African Reserve Bank has cut the lending rate to a two-year low of 6.5 percent.

The South African Reserve Bank (Sarb) has cut its benchmark lending rate to 6.5 percent – the lowest in two years. This is the second rate cut since July last year.

Earlier this week, Governor Lesetja Kganyago made the announcement that the central bank’s Monetary Policy Committee (MPC) had voted to cut the repurchase rate by 25 basis points to 6.5 percent. According to Kganyago, four MPC members voted for a cut, while three voted to leave the policy unchanged. 

The central bank further forecasts that inflation will remain in the target band until at least the end of 2020, peaking at 5.5 percent in the first quarter of 2019.