Rate cut: That’ll do very nicely indeed, says JSE and the rand
Reserve Bank cut the repo rate 0.25% to 6.5%, following expectations of an imminent US Fed rate cut
The JSE closed higher on Thursday as the rand firmed following the Reserve Bank’s decision to cut the the repo rate by 0.25% to 6.5%.
The bank said it expects inflation to average 4.4% for 2019 and revised its GPD growth forecast from 1% to 0.6%. The rate cut is in line with the market’s near certainty that the US Federal Reserve will cut rates at the end of July.
“Historically, whatever the Fed does, we tend to follow suit. A cut by the bank sounded like a prudent thing to do. If the Fed gets more dovish at their next meeting then that would be an easy excuse for the SARB to cut again,” said Nick Kunze of Sanlam Private Wealth...