SA Reserve Bank cuts rates by 100 basis points

The bank now forecasts GDP to contract for the whole of 2020 before rebounding to 1% and 1.6% the next two years. This is sharply down from its previous estimates of 1.2% in 2020, 1.6% in 2021 and 1.9% in 2022.

“Despite the general rise in risk, the significantly lower forecast for headline inflation has created space for monetary policy to respond to the rapid deterioration in economic conditions,” Reserve Bank governor Lesetja Kganyago said.sees inflation averaging 3.8% in 2020, way below the mid point of its 3% to 6% target range. Inflation will then accelerate to an average of 4.6% in 2021, before slowing to 4.4% in 2022.

Though the rate cut is likely to bring much-needed relief to consumers and businesses, there is scepticism that monetary policy alone can do much to buffer SA from the coronavirus-inspired crisis. Though the government has promised a package of economic support measures, which are yet to be outlined – there is limited room in the fiscus which was already under pressure before the virus struck.

Source: Loan Digest (loandigest.net)

It will help a bit. But not enough to save is.

Reserve Banks are the biggest scams in the history of mankind owned by few individuals like Rothchild family, Rockerfella family, JP Morgan family etc those reserve banks are milking country's economies to fund their Satanic New World Order. See the link

NICE

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