TO: PRINT AND ELECTRONIC MEDIA HOUSES
FROM: KGANKI MATABANE
DATE: 19 MARCH 2020
SUBJECT: BBC WELCOMES SARB DECISION TO CUT REPO RATE BY 100 BASIS POINTS
The Black Business Council (BBC) welcomes the decision by the South African Reserve Bank (SARB)’s Monetary Policy Committee (MPC) to cut the repo rate by 100 basis points to 5.25%, in response to the impact of the coronavirus disease (COVID-19) on the economy
“In the face of global recession, collapsing oil prices, crumbling markets, inflation at midpoint range, business confidence at an all-time low and rising unemployment, we are of the view that the response is a few weeks too late. Furthermore, a 200 basis points cut would have been a more appropriate and bold response as part of a more comprehensive economic stimulus package.” says the BBC President Sandile Zungu.