September 20, 2024 10:14 GMT
MNI SARB Review - Sep 2024: Easing Starts With Cautious Cut
The SARB reduced the repo rate by 25bp, starting an easing cycle amid an improved inflation outlook.
MNI (LONDON) - Executive Summary:
- The SARB reached consensus to reduce the repo rate by 25bp.
- Members discussed an unchanged stance, a 25bp cut, and a 50bp cut.
- The Committee said that inflation risks as balanced.
Full review including summary of sell-side views here:
The South African Reserve Bank (SARB) lowered the repo rate by 25bp to 8.00%, inaugurating a rate-cutting cycle, opting not to mimic the 50bp rate cut delivered by the Fed the evening before. The decision fell in line with consensus and had been fully priced by the market ahead of the meeting. Governor Lesetja Kganyago revealed that the Monetary Policy Committee (MPC) discussed three different scenarios, which also included a hold and a 50bp cut, but eventually reached a unanimous decision. The Governor emphasised the central bank’s cautious approach to monetary policy, which was reflected in the language of the statement.
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