Why the SA Reserve Bank cut rates (against the expectation of 92% of economists)

We’re not concerned about our credibility. We earned our credibility and we’ll protect it!

Lesetja Kganyago, Sarb

What do you do when inflation is coming down and growth is so weak?

Busisiwe Radebe, Nedbank

South African Reserve Bank (Sarb) Governor Lesetja Kganyago surprised most economists on Thursday when he announced that the repo rate would be cut by 25 basis points to 6.75%.

The prime lending rate will fall from 10.5% to 10.25%.

The Money Show’s Bruce Whitfield interviewed Nedbank Economist Busisiwe Radebe.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

No President or Finance Minister – past or present – has ever told the Sarb how to execute its mandate.

Lesetja Kganyago, Sarb

We are sitting on the shoulders of the giants that preceded us.

Lesetja Kganyago, Sarb

I did not call it!

Busisiwe Radebe, Nedbank

They’re concerned about growth.

Busisiwe Radebe, Nedbank

I didn’t call it, because I was worried about the rand.

Busisiwe Radebe, Nedbank

The rand is still the big thing in the room here. We can’t ignore that!

Busisiwe Radebe, Nedbank

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This article first appeared on 702 : Why the SA Reserve Bank cut rates (against the expectation of 92% of economists)


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