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Reserve Bank Governor Lesetja Kganyago says the Monetary Policy Committee (MPC) has decided to cut the repo rate by 25 basis points meaning that the prime lending rate decreases to 11.25 percent.
It’s the second consecutive rates cut. The move had been widely expected.
The bank’s decision comes on the back of a drop in inflation of around one percentage point to 2.8 percent. This is below the bank’s target of three to six percent.
However, Kganyago says the MPC was concerned about factors that could fuel inflation in the future.
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