SARB cuts interest rate by one percentage point

Tito Mboweni, South African Reserve Bank governor, said the committee had to strike a "careful balance" in determining monetary policy, explaining yesterday's one percentage point cut in interest rates.


The Reserve Bank struck a cautious note yesterday as high wage growth and robust domestic demand continue to cloud the inflation outlook.

The Bank's monetary policy committee lowered its repo rate to 11%, prompting commercial banks to cut the prime lending rate from 15.5%

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