Most economists have welcomed the Reserve bank’s decision to cut the repo rate via SABCNewsOnline
Chief economist at Standard Chartered, Razia Khan, says a cut is a step in the right direction.
“The market has been pricing n close to 50 bps. Our own SARB view has been revised in recent pat but on reflection, we think 100 bps was fully justified. SA is now faced a health emergency with coronavirus is difficult to forecast with great accuracy where growth will come from. The economy can face a full contraction on a full-year basis of relatively small contraction of 0.2%.”
Economists say the Reserve Bank’s rate cut will provide a temporary reprieve to consumers and the economy as the coronavirus continues to spread around the world. BNP Paribas Senior Economist, Jeff Schultz, says the cut will not provide substantial support for the struggling economy. “It can help to cushion some of the blow to the economy. For every 25 bps that the SARB delivers, it adds about 0.1% to the economy. We are not talking about a game-changer for growth this year, but over the next 12 months it could add up to half a percentage point to GDP. It is not massive but also not insignificant…We do think this is a step in the right direction, but to create more jobs, we need the global economy to be fairing much better which for the next six months looks unlikely.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cricket South Africa concerned about players' safety abroad: Faul - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Cricket South Africa (CSA) is concerned about local players that are based abroad in the wake of the coronavirus globally.
Read more »
Churches cancel Easter services - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The Catholic Church in Johannesburg has cancelled all its Easter services. This is a response to President Cyril Ramaphosa’s declaration of coronavirus as a national disaster via SABCNewsOnline
Read more »
Home - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.SABCNews Top Stories | 18 March 2020 Visit for the latest on these stories and more. CoronaVirusUpdate COVID19SouthAfrica CoronavirusInSA Wanderers Taxis Ramaphosa Mbalula
Read more »
Rate cut on the cards. The only question is ‘how much?’Of 21 economists in a Bloomberg survey, 11 predict a 50 basis-point reduction, while the balance expect the rate to be lowered by 25 basis points.
Read more »
BREAKING NEWS: SA Reserve Bank cuts rates by 100 basis pointsThe Reserve Bank says GDP for the whole of 2020 will contract 0.2%
Read more »
BREAKING: SARB slashes interest rate as coronavirus outbreak hits countryThe South African Reserve Bank govenor Lesetja Kganyago made the interest rate cut announcement following an MPC meeting that started on Wednesday and ended on Thursday at the Bank's headquarters in Pretoria.
Read more »