South Africa has been economically boosted this week with the news that Moody’s has let the country sigh a breath of relief with a stable outlook and an avoidance of a 3rd Junk Status rating. Furthermore, the Reserve Bank has cut the Interest rate down to 6.5%, with a growth forecast for 2018 increasing to 1.7% from 1.4% in January.
We have collected the thoughts of Financial experts to expand upon what this means to you as a consumer:
SA dodges third junk rating as Moody’s lifts outlook
Outlook revised to stable on more transparent policies.
By Arabile Gumede and Ben Bartenstein, Bloomberg
South Africa escaped a third junk rating as Moody’s Investors Service kept its assessment of the nation’s debt unchanged, citing more transparent and predictable policies under President Cyril Ramaphosa.
The African nation’s outlook was revised to stable from negative. The decision will boost sentiment and probably bolster the rand, which rallied after Ramaphosa took over as leader of the ruling African National Congress in December and became president last month. With the local-currency rating
remaining investment grade, the nation avoids being excluded from global benchmark indexes that could have led to outflows of as much as much as R100 billion ($8.4 billion)…Read More
SA Reserve Bank cuts interest rates
Cape Town – The monetary policy committee of the SA Reserve Bank has decided to cut interest rates by 25 basis points. This means the repo rate is now 6.5% and the prime lending rate 10%. The last time the central bank cut the repo rate was in July 2017, when the MPC reduced the rate by
25 basis points from 7% to 6.75%.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to commercial banks and the prime rate the rate at which commercial banks lend money to borrowers… Read More
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