South Africa surprises markets with rate cut

south-africa-reserve-bank-sarb-hq-pretoria-2
Elske Photography

The monetary policy committee of the South African Reserve Bank (Sarb) unexpectedly cut rates on January 16 in a bid to boost weak growth.

In a unanimous decision, rate-setters reduced the repurchase rate by 25 basis points to 6.25%, and the prime rate to 9.75%. This is the first rate reduction since July 2019, when the committee also cut the repo rate by 25bp.

“The lower inflation forecast and improved risk profile opens some space to provide further policy accommodation to the economy,” the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: