JOHANNESBURG, 17 SEPTEMBER 2020 – The decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee to leave interest rates unchanged generally aligns with market expectations and comes as no surprise as the economy continues to splutter, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Economist Michael Ade said today.
Commenting on the MPC’s decision to leave the repo rate unchanged at 3,50%, Dr Ade said the SARB had missed an opportunity to cut interest rates by a further 25 basis points, a move that is undoubtedly disappointing for embattled and over-indebted consumers and businesses. He said, “further reduction of the repo rate would have further cushioned the economy from the impact of the COVID-19 pandemic”.