South Africa cuts benchmark interest rate for the fourth time in 2020
2020-05-25 11:47:45 [Print]
The South African Reserve Bank announced on May 21st that it will cut its benchmark interest rate by 50 base points to 3.75%. This is the fourth time for the South African Reserve Bank to cut its benchmark interest rate in 2020.
The governor of the South African Reserve Bank noted that cutting the interest rate is to release more liquidity for financial institutes to supply loans to families and enterprise. According to him, monetary policy can play a proactive role in mitigating financial difficulties, but the government needs to carry out macroeconomic policies and boost structural reform in order to promote economic growth.
He also disclosed that South Africa is about to loosen its Covid-19 control and prevention policy, which will help the economy grow in this country.
The South African Reserve Bank already cut its benchmark interest rate in January, March and April 2020 respectively before this time and the decrease range of the rate will reach 275 base points after the rate cutting is finished this time.
The governor of the South African Reserve Bank noted that cutting the interest rate is to release more liquidity for financial institutes to supply loans to families and enterprise. According to him, monetary policy can play a proactive role in mitigating financial difficulties, but the government needs to carry out macroeconomic policies and boost structural reform in order to promote economic growth.
He also disclosed that South Africa is about to loosen its Covid-19 control and prevention policy, which will help the economy grow in this country.
The South African Reserve Bank already cut its benchmark interest rate in January, March and April 2020 respectively before this time and the decrease range of the rate will reach 275 base points after the rate cutting is finished this time.
