By Loushe Jordaan Gilbert
The repo rate was lowered by 25 basis points to 7.5% by the Reserve Bank’s monetary policy committee. Consequently, the prime loan rate will drop to 11%.
The Reserve Bank claims that a steep drop in agricultural output was the primary cause of the economy’s third-quarter contraction.
Speaking on VOC Breakfast on Friday morning, Economist Dawie Roodt said there are suggestions this could be the last reduction for a while but believes it won’t be the last one this year.
“We are of the view that this could be the last reduction for a while. I think they could have cut it by another 25 basis points but there is so much economic uncertainty, so they had play it safe,” he added.
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