Left Menu
Development News Edition

Reserve Bank reduces repo rate by 25 basis points to 6.25%

Announcing the decision on Thursday, South African Reserve Bank Governor Lesetja Kganyago noted that the domestic economic outlook remained fragile.

Devdiscourse News Desk | Pretoria | Updated: 16-01-2020 19:21 IST | Created: 16-01-2020 19:21 IST
Reserve Bank reduces repo rate by 25 basis points to 6.25%
Kganyago said, however, monetary policy actions will continue to focus on anchoring inflation expectations near the mid-point of the inflation target range in the interest of balanced and sustainable growth. Image Credit: Flickr

The Reserve Bank has reduced the repo rate by 25 basis points to 6.25% in line with market expectation.

Announcing the decision on Thursday, South African Reserve Bank Governor Lesetja Kganyago noted that the domestic economic outlook remained fragile.

"Despite a rebound in local GDP in the second quarter of 2019, GDP contracted in the third quarter. The fourth quarter is expected to show some positive growth," he said.

Despite this, he said, the Monetary Policy Committee of the SARB unanimously decided to reduce the repurchase rate by 25 basis points.

Kganyago said, however, monetary policy actions will continue to focus on anchoring inflation expectations near the mid-point of the inflation target range in the interest of balanced and sustainable growth.

"In this persistently uncertain environment, future policy decisions will continue to be highly data-dependent, sensitive to the balance of risks to the outlook, and will seek to look-through temporary price shocks," he said.

The repo rate was last cut in July 2019.

(With Inputs from South African Government Press Release)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Lockdown dampens German private sector activity in January - PMI

Activity in Germanys services sector shrank for the fourth month in a row in January, as a hard lockdown shuttered most non-essential businesses as well as schools in Europes biggest economy, a survey showed on Friday. IHS Markits flash Pur...

Egypt officials: Bomb kills 1 police and wounds 3 in Sinai

The Islamic State has blown up a roadside bomb in the restive northern Sinai peninsula, killing one member of Egypts security forces and wounding three others, medical and security officials said late Thursday.The explosion at dawn Thursday...

Securitisation volume crosses Rs 26,000 cr in Q3: Crisil report

Securitisation volume crossed Rs 26,000 crore in the quarter ended December of the current fiscal as more originators entered the market and mutual funds started investing in new issuances, says a report.This takes the total volume for the ...

Tennis-Badosa's Australian Open in doubt after positive COVID-19 test

Paula Badosas Australian Open spot could be in jeopardy due to her positive COVID-19 test after the Victoria state government confirmed on Friday that anyone contracting the virus would have to undergo an additional period of isolation.Bado...

Give Feedback