The South African Reserve Bank has cut the repo rate by 100 basis points, or one percentage point. This brings the country's repo rate to 4.25%. The cut will be effective from 15 April.

This comes after the bank brought the scheduled May meeting of its Monetary Policy Committee forward to respond to the impact of the coronavirus pandemic on South Africa's economy. 

Reserve Bank governor, Lesetja Kganyago, said at a briefing that the decision by the bank's MPC to lower the repo rate was unanimous. 

Tuesday's decision was the second major cut in less than a month and the third cut this year, after the central bank cut the rate by one percentage point in mid-March. In mid-January the bank lowered the rate from 6.5% to 6.25%.

Author: Industry News

Industry News