Reserve Bank Governor Lesetja Kganyago has announced that the monetary policy committee has decided to cut rates by 25 basis points – meaning that the prime lending rate decreases to 11%.
It’s the third consecutive rate cut by the Central Bank.
The cut comes despite the US Fed’s decision to keep rates on hold.
The South African rates decision was widely expected. However, some analysts have said the Bank may keep rates steady amid global instability.
Kganyago made the announcement in Pretoria on Thursday. He says core inflation remains elevated. “Core inflation will remain at or below the midpoint across the forecast horizon.”
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SARB Governor notes that the rand-dollar exchange rate had offset the benefits of lower oil prices, while most other factors remained stable.
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