SA’s high risk premium is the major driver of a higher repo rate, Reserve Bank head of economic research Chris Loewald told MPs on Tuesday.

Loewald is also a member of the Bank’s monetary policy committee (MPC), which decides the repurchase rate. In January, the MPC decided to reduce the repo rate by 25 basis points to 6.25% and it foresees a second cut late in 2020.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now