The South African Reserve Bank SARB made headlines on Thursday afternoon by announcing a 25 basis point cut to the repo rate, reducing it to 7.25, reports Cape town Etc .
This decision, ratified by the Monetary Policy Committee MPC, reflects a considered response to the ongoing economic realities marked by low inflation and sluggish growth, leading to a new prime lending rate of 10.75.
Many stakeholders welcomed this development as a cautious yet vital step towards easing the financial burden on consumers.
Brett Herron, Secretary-General of the GOOD Party, characterised the move as a cautious step in the right direction.
Nevertheless, he reserved a note of criticism, suggesting that a more aggressive cut of 50 basis points would have been more suitable in light of existing market conditions.