As broadly expected by several economists, Reserve Bank Governor Lesetja Kganyago announced a cut of 25 basis points to the repo rate on Thursday afternoon, despite the CPI print for October moving upward to 3.6.
This was the first monetary policy committee MPC meeting since finance minister Enoch Godongwana announced that the official inflation target would be adjusted downwards for the first time in 25 years, to 3.
The MPC decided to reduce the policy rate by 25 basis points, to 6.75, with effect from November 20. The decision was unanimous. Members agreed there was scope now to make the policy stance less restrictive, in the context of an improved inflation outlook.