Reserve Bank gives government growth challenge after delivering minimal rate cut

Good news: Nomfundo Tshazibana, left, adviser to Reserve Bank governor Lesetja Kganyago, deputy governor Kuben Naidoo and economic research & statistics development head Rashad Cassim in Pretoria, July 18 2019. The Bank cut the repo rate for the first time since 2018. Picture: FREDDY MAVUNDA

The SA Reserve Bank resisted calls for a more aggressive cut in interest rates even as it slashed its 2019 economic growth forecast, challenging the government to do its bit by delivering on long-promised structural reforms. The central bank, which on Thursday provided some much-needed relief for consumers by cutting interest rates for the first time since March 12 2018, cited “fiscal risks” among factors undermining the rand, highlighting the challenge facing finance minister Tito Mboweni as he seeks to convince ratings companies he can get the nation’s finances into shape.

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