The Reserve Bank, which often comes under attack for its alleged conservatism, has been rather active lately. Just three weeks after cutting interest rates by a bigger margin than economists expected and following that with a range of liquidity-boosting measures, it has done it again. For the first time in about 18 years, it convened an unscheduled policy meeting.

Citing the unprecedented economic disruption caused by the Covid-19 outbreak and the resultant moderation in the inflation outlook, the monetary policy committee (MPC) delivered a one percentage point cut (https://www.businesslive.co.za/bd/economy/2020-04-14-reserve-bank-cuts-interest-rates-by-one-percentage-point/) in the repo rate, adding to a similar reduction just three weeks ago...

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