Retail stocks rallied on Thursday afternoon after the Reserve Bank’s monetary policy committee unexpectedly lowered the repurchase rate, in a move that would likely help alleviate pressure on the ailing economy. Interest rate-sensitive retailers were substantially higher after the Bank lowered the repo rate by 25 basis points, its first cut in five years. Retailers and other consumer-facing stocks have been under pressure in recent months amid concerns over the direction of the economy, which slipped into a technical recession in the first quarter of this year. "I don’t necessarily think [the rate cut] is going to stimulate the economy. What it does is help individuals and companies with too much debt to survive," Sanlam Private Clients head of online trading Gerhard Lampen said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.