ISAAH MHLANGA: It’s too soon to lower repo rate until the effects of earlier cuts are felt
An interest-rate cut premised on the idea of helping the unemployed is misplaced
On Thursday the Reserve Bank monetary policy committee (MPC) will announce its interest-rate decision. The median expectation from a Bloomberg survey of 19 economists is for a 50 basis point (bp) cut in the repurchase rate from 4.25% to 3.75%.
To be exact, 10 of the surveyed analysts expect a 50bp cut, three expect a 100bp cut, another three expect a 25bp cut; two expect a 75bp cut and one expects no change in interest rates.