Government has welcomed the South African Reserve Bank’s (SARB) decision to cut the repo rate by 25 basis points to 7%.

“Government welcomes the decision by the South African Reserve Bank to reduce the repo rate by 25 basis points to 7%. The move provides much-needed relief for South African households, many of who continue to face financial pressure due to the rising cost of living,” acting government spokesperson Nomonde Mnukwa said yesterday.

Addressing a media briefing on the Monetary Policy Committee’s decision on the repo rate, SARB governor Lesetja Kganyago said the decision to reduce the policy rate was unanimous.

Mnukwa said the rate cut is expected to ease the burden on consumers by lowering the cost of borrowing, while also creating conditions more conducive to stimulating investment, supporting businesses, and driving economic activity.

“The decision reaffirms the soundness of South Africa’s monetary policy framework and the importance of co-ordinated efforts to support inclusive growth. Government continues to implement structural reforms and improving the ease of doing business to unlock the full potential of the economy and create jobs,” Mnukwa explained. – SAnews.gov.za

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