Reza Hendrickse, Portfolio Manager at PPS Investments.
By Reza Hendrickse, Portfolio Manager at PPS Investments.
The Monetary Policy Committee (MPC) voted in favour of lowering the repo rate by 0.25% at their July meeting, which was aligned to predictions from the Quarterly Projection Model (QPM) that showed a 25 basis point cut at some point this year. In May, only two out of the five MPC members voted in favour of a cut, but this month the Committee voted unanimously in favour of lowering the repo rate, which now stands at 6.5%. The cut will provide some welcome relief to borrowers during these tough economic conditions. The South African Reserve Bank’s (SARB) more accommodative stance was to a large extent expected, although some had hoped for a more drastic drop of 50 basis points. (more…)
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