The information in this article is courtesy of Fin24 (Rate Cut Surprise – 13 August 2009)
South African Reserve Bank Governor, Tito Mboweni surprised the nation yesterday by announcing a 50 basis point rate cut. This brings the interest rate down to 7.0%.
According to Mboweni the monetary committee had quite a long debate about the issue and in the end the cut was agreed on.
He said that the international economy seems to have improved although he warned that recovery would not be uniform across all regions and countries.
He also added that it is clear that the exchange rate has been of some assistance in the job of lower the country’s inflation.
Consumer Price Inflation (CPI) are forecast to stay more or less unchanged with CPI inflation predicted to continue a moderate downward trend and enter the target band around the second quarter of 2010 and remain there until the end of 2011.
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