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.

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