Reserve Bank Governor Lesetja Kganyago says he is concerned that despite good inflation figures, the countrys business confidence remains low and policy uncertainty elevated.
The banks Monetary Policy Committee has cut the interest rate by 25 basis points.
This brings the repo rate down to 7.7 and the prime lending rate to 11.25.
Kganyago made the interest rate announcement in Pretoria yesterday.
He says, "In the near term, inflation appears well contained. However, the medium-term outlook is highly uncertain, with material upside risks. These include higher prices for food, electricity and water, as well as insurance premiums and wage settlements. Against this backdrop, the MPC decided to reduce the policy rate by 25 basis points, to 7.75, with effect from 22 November 2024."
