SARB Announces 25 Basis Points Interest Rate Chop, South Africans Not Happy

• South African Reserve Bank governor Lesetja Kganyago announced that the interest rate has been reduced by 25 basis points
• This means that the interest rate is 8%, which is what economists predicted a few hours before the announcement
• South Africans on social media slammed the governor and many accused the SARB of copying the United States Federal Reserve

Tebogo Mokwena, Briefly News's current affairs journalist, covered current affairs relating to the economy, finance, banks, and state-owned enterprises during his seven years at Daily Sun and Vutivi Business News.

JOHANNESBURG—The South African Reserve Bank has announced that the interest rate has been slashed by 25 basis points. South Africans wanted it to be cut by more than 50.

SARB cuts interest rates

@Newzroom405 posted a video of Kganyago making the announcement. Economists earlier predicted that the interest rates would be reduced by 25 basis points. He said the MPC decided to reduce the policy rate by 25 basis points, reducing the interest rate to 8%. It will be effective from 20 September 2024.

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South African Reserve Bank expected to cut interest rates, Mzansi not surprised

"In discussing the stance, MPC members considered an unchanged stance, a 25 basis point cut and a 50 basis point cut. The MPC ultimately reached consensus on 25 basis points, agreeing that a less restrictive stance was consistent with sustainable lower inflation over the medium term."

View the announcement here:

South Africans not impressed

Netizens roasted the South African Reserve Bank.

Mushavhi said:

"No backbone here, just following the USA."

FSD said:

"The owners of the interest rates are in charge and control."

Ayanda M asked:

"Why not 50 like the Fed?"

Sir Jay said:

"Today, he is not shouting because he is cutting."

Braleather asked:

"What's 25 basis points going to help with our financial burdens?"

West to West said:

"A foreign-owned Reserve Bank is an impediment to our fragile economic climate."

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Repo rate hiked in 2023

In a related article, Briefly News reported that the South African Reserve Bank hiked the repo rate by 50 basis points in 2023.

The interest rate increased higher than economists predicted, and South Africans were shocked at its impact on their pockets.

Source: Briefly News