On Wednesday the Reserve Bank cut the repo rate by 25 basis points to 6.5%. Governor Lesetja Kganyago said that although the increase in value added tax (VAT) in April would put pressure on inflation, the stronger rand would mitigate this. The Bank has increased the country’s GDP forecasts for 2018 to 1.7% from 1.4%, but Kganyago said the growth outlook remained challenging. Absa Investment Strategist Keorapetse Leballo, Nedbank economist Busisiwe Radebe and Nascence Advisory economist Xhanti Payi spoke to Business Day TV, and provided some analysis on the monetary policy committee’s decision to cut rates. OR LISTEN TO THE AUDIO: Listen to all latest podcasts here.
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