Sinesipho Schrieber
2 minute read
22 Nov 2019
6:10 am

Reserve Bank ‘could have helped consumers’

Sinesipho Schrieber

An interest rate cut would have given consumers buying power to revive the economy through spending.

Sarb warns against getting involved in non-licensed financial service firms.

The South African Reserve Bank’s (Sarb) decision to keep the repo rate unchanged may be a safe option in the current economic climate, but some economists believe the central bank missed an opportunity to aid consumers. Sarb governor Lesetja Kganyago announced yesterday the monetary policy committee decided to keep the interest rate at 6.5% due to the unstable local economy. Economist Mervyn Abraham said the central bank missed an opportunity to cash in on the decrease in inflation rates and invest in economic growth. An interest rate cut would have given consumers buying power to revive the economy through spending....