South African Reserve Bank cuts repo rate to support struggling workers
In a positive move for South African workers grappling with rising debt levels, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) this week announced a reduction in the repo rate by 25 basis points, lowering it to 7.25%.
This decision comes as a welcome relief for many households facing financial difficulties and aims to stimulate broader economic recovery.
Governor Lesetja Kganyago revealed that the decision is accompanied by a more favourable outlook for consumer price inflation (CPI). This raises the possibility of an additional reduction of 25 basis points later this year, provided that both global and domestic economic conditions remain conducive to a low CPI.
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