EDITORIAL: Lesetja Kganyago’s surprise cut may not be the last
Though the size of the rate reduction was unexpected, the Reserve Bank is likely to have room to cut again this year
19 March 2020 - 19:58
Reserve Bank governor Lesetja Kganyago has a reputation as a hawk, and yet in the last two meetings he has surprised his detractors — by cutting interest rates.
The magnitude of Thursday’s surprise will have taken many by surprise, even those who say a percentage point cut in the repo rate under the circumstances isn’t enough. Thinking you know what the central bank will do is not the same as accurately predicting what it will do...
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