Calls for Reserve Bank to cut interest rates amid COVID-19 pandemic - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Pressure is mounting on the South African Reserve Bank to cut interest rates as the impact of the coronavirus chokes economic activity.

The Federal Reserve Board on Sunday implemented its second emergency interest rate cut this month, because of its increasingly dire predictions about the economic impact of the coronavirus.

Financial markets have plunged in recent weeks as investors fixated on potential costs of the coronavirus outbreak. Now all eyes are on the Reserve Bank’s Monetary Policy Committee. The coronavirus will keep the South African economy in a recession for much longer with dire consequences. The local economy is taking strain from disruptions in major trading partners and the impact on logistics and tourism.

Meanwhile, Minister of Finance, Tito Mboweni says that a conversation between him and the Governor of the South African Reserve Bank, Lesetja Kganyago, is taking place regarding what to do in the current pandemic.

 

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