Data provided by McGregor BFA
All data is delayed
Loading...
See More

Reserve Bank cuts interest rates

Jul 19 2012 16:01 Sapa

Related Articles

Retail sales dim rate cut hopes

Barclays former exec testifies

Libor scandal undermines market confidence

Repo rate seen steady at 5.5%

Factory output blows past forecasts

Interest rate cut to stimulate EU economies

 
Johannesburg - The SA Reserve Bank (Sarb) has cut the repo rate by 50 basis points to five percent, governor Gill Marcus said on Thursday.

The prime rate would decline to 8.5%.

This follows nine consecutive Monetary Policy Committee (MPC) meetings where the repo rate remained unchanged at 5.5 percent, after it was reduced by 650 basis points between mid-2008 and November 2010.

The Sarb determines the interest rate based on its mandate to keep inflation within a target of between three and six percent.

Consumer price inflation was 5.5% for June while producer price inflation was 6.6% in May.

"The MPC views the prevailing conditions to be appropriate for further monetary accommodation to the economy that will not undermine the inflation outlook and has therefore decided to reduce the repurchase rate by 50 basis points to 5.0% from Friday 20 July 2012," Marcus said.

"While it is recognised that such a move on its own will not overcome the challenges facing the economy, it is felt that it can help alleviate some of the pressures faced by some sectors, and will act appropriately in line with its mandate."

"There is no easy decision in the MPC and this one was a particularly robust discussion. In the end it was a unanimous decision that this was the right thing to do. Given the conditions that are prevailing and our concerns going forward we thought it important to be proactive," she said.

sarb  |  gill marcus  |  interest rates  |  sa economy
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
38 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Don't be voting cattle, warns Tutu

Archbishop Emeritus Desmond Tutu has warned South Africans to think carefully before they cast their ballots on 7 May.

 
 

Latest elections multimedia

11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...