The Head of Macroeconomic Research at Standard Bank, Elna Moolman, says the impact of the interest rate cut, which was widely expected by markets will only be felt next year.
Her comments follow the Reserve Banks 25 basis points interest rate cut announcement , which takes the prime lending rate to 10.25.
Dr Moolman says while the rate cut is expected to bring some relief to indebted consumers, the total impact on the economy tends to peak in 10 to 12 months.