Tuesday, 24 March
The Monetary Policy Committee of the SA Reserve Bank has cut the repo rate by 100 basis points.
The repo rate now stands at 9.5 percent while prime has been reduced to 13 percent.
"The global economy has continued to weaken significantly in recent months as a result of the turmoil in the financial markets. There is growing uncertainty regarding the depth and duration of the economic slowdown," Mboweni said.
He added that the South African economy had not escaped the impact of these developments, and domestic production had contracted as a result of weak domestic demand and a significant decline in export demand.
As measured by the reweighted and reconstituted consumer price index (CPI) for all urban areas, measured 8.1 percent in January 2009. Food and non-alcoholic beverages prices, which increased at year-on-year rates of 15.7 percent in January, contributed 2.4 percentage points to total inflation. The housing and utilities category contributed 2.1 percentage points, and together with food accounted for more than half of the measured inflation increase, Mboweni said.
Well it seems that things are finally starting to turn around. Although this is relief for many, difficult times will continue until the end of this year the guys in black suits predict :)