SACCI welcomes repo rate cut

Friday, March 26, 2010

Pretoria - The South African Chamber of Commerce and Industry (SACCI) has welcomed the Reserve Bank's decision to cut the repo rate by 50 basis points.

The central bank's Monetary Policy Committee (MPC) yesterday cut the repo rate from 7 percent to 6.5 percent much to the relief of hard pressed consumers.

"SACCI welcomes the reduction in the repurchase rate of 50 basis points. This clearly demonstrates an awareness of the need to stimulate the economy despite the threats to the inflation associated in the main with increases in administered prices," said SACCI.

To date the repo rate has been reduced by 550 basis points since December 2008.

"SACCI believes that the lower rate will assist its members, particularly SMMEs, who are still vulnerable despite the hesitant recovery of the country from the recent global economic downturn. It will also assist consumers who are burdened with high levels of debt," said the chamber.