Interest rate cut almost certain

2009-03-23 00:00

OVER-INDEBTED consumers will almost certainly receive a significant interest rate cut when the SA Reserve Bank’s Monetary Policy Committee (MPC) announces its decision this afternoon.

Economists expect Reserve Bank governor Tito Mboweni to lower the repo rate by at least one percentage point from 10,5% to 9,5% — a move which will likely result in banks slashing the prime rate to 13% from its current level of 14%.

Last week, Mboweni announced that the MPC would hold an early meeting in order to make a decision on interest rates.

Some economists have, however, argued that the early meeting this week should have taken place earlier this month.

Efficient Group economist Fanie Joubert warned that the MPC is still confronted with several risks, including South Africa’s large deficit on the current account, the weakening of the rand, and a possible year-end uptick in consumer inflation.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.