Repo rate slashed to 5.25%
The repo rate has been cut by 100 basis points and is now 5.25%.
The percentage point cut means the prime lending rate is 8.75%.
Reserve Bank Governor, Lesetja Kganyago made the announcement in a virtual briefing a few minutes ago - and says the decision by the Monetary Policy Committee was unanimous.
"Apart from the Covid-19 global pandemic, electricity supply constraints and other sources of uncertainty are expected to keep economic activity muted. Public sector investment has declined, and job creation has slowed."
"Business and household confidence have weakened further. Government and household consumption, and private investment, however, continue to grow, albeit modestly."
READ: Economist: COVID-19 to ignite SA and global recession
He says the effects of the novel coronavirus outbreak might be felt for some time.
"Globally, a once-healthy economic growth outlook has been revised down sharply due to the outbreak and spread of Covid-19."
"This coronavirus will negatively affect global and domestic economic growth through the first half of 2020, and potentially longer depending on steps taken to limit its spread."
