South African central bank cuts rates after first-quarter growth plunge
South Africa saw 3.2% GDP contraction in first quarter after major power shortages
The South African Reserve Bank has cut its policy rate by 25 basis points to 6.5%, after GDP contracted by 3.2% in the first quarter.
The decision was the Sarb’s first rate cut since March 2018. Governor Lesetja Kganyago announced the decision at a press conference today (July 18), where he spoke frankly about South Africa’s economic problems.
Kganyago said the Sarb “remains concerned about longer-term risks”, arguing that “investment prospects will continue to be limited in the absence of
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