Reserve Bank signals that easing cycle is done
Before this week’s meeting, the Bank has slashed the repo rate five times to the lowest in about 47 years
The easing cycle has ended for the moment, the Reserve Bank, one of the most aggressive rate cutters among central banks in emerging markets since the outbreak of Covid-19, has signalled.
Its monetary policy committee (MPC) ended a meeting on Thursday without a reduction for the first time in 2020. The MPC left the repo rate at 3.5% and said its modelling suggests that rates may start rising in 2021, even as it forecast a deeper economic contraction and slower inflation.