The Reserve Bank cut interest rates by twice as much as economists predicted as it joined a global fight against the coronavirus outbreak that is threatening to plunge the world economy into a recession.

Governor Lesetja Kganyago and the rest of the monetary policy committee (MPC) decided to reduce the repo rate by a full percentage point, the deepest cut in more than a decade, as they dramatically revised their inflation and growth forecasts downwards, saying GDP for the whole of 2020 would contract 0.2%.

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