EDITORIAL: Reserve Bank is likely to cut rate, and that is the right move
One factor favouring a cut is the rand’s recent resilience, which has led to it being among the best performing emerging-market currencies in the past month
When the SA Reserve Bank’s monetary policy committee (MPC) last met in July, it delivered a rate cut that was the smallest since the Covid-19 outbreak hit the country, and two out of five members voted to keep the repo rate unchanged.
Having been one of the most aggressive rate cutters in emerging markets, a consensus started to build that it might pause after dropping the repo rate by 25 basis points to 3.50%, and give itself time to assess the effects of the stimulus on the real economy. Hence economists were divided going into this week’s meeting, though a majority thinks it will cut by another 25 basis points on Thursday...
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