Pretoria – Further monetary policy easing is not automatic‚ and will be highly dependent on global and domestic developments‚ Reserve Bank governor Gill Marcus
said at the bank's ordinary general meeting in Pretoria on Friday.
Marcus was responding to what she said was much speculation as to whether the 50 basis point rate cut this month was the beginning of a renewed interest rate easing cycle.
“This interest rate reduction should‚ however‚ be seen as part of the continued monetary policy response to the crisis that began in 2008‚” she said.
Marcus told shareholders that the bank needed to remain vigilant to inflation and financial stability risks‚ and to respond appropriately in line with its mandate.
“We will continue to implement policy in a responsible manner‚” Marcus said.
The situation in the euro area was “increasingly precarious” and no closer to a quick resolution‚ Marcus said.
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