EDITORIAL: Busy times for the Reserve Bank
For the first time in about 18 years, the Bank convenes an unscheduled policy meeting
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...