THE MORNING BRIEFThe Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) lowered its policy rate today by 0.25%, from 8.0% to 7.75%. The Committee’s decision was unanimous, and the cut was widely expected. Yesterday’s CPI announcement, which showed year-on-year inflation falling to a four-year low of 2.8%, meant a follow-up cut was almost guaranteed. At the same time, the SARB’s conservative approach meant anything more than 25bp was extremely unlikely.
The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) lowered its policy rate today by 0.25%, from 8.0% to 7.75%. The Committee’s decision was unanimous, and the cut was widely expected. Yesterday’s CPI announcement, which showed year-on-year inflation falling to a four-year low of 2.8%, meant a follow-up cut was almost guaranteed. At the same time, the SARB’s conservative approach meant anything more than 25bp was extremely unlikely.
Guest: Reza Hendrickse, Portfolio Manager at PPS Investments
