South African Reserve Bank Governor, Lesetja Kganyago cut the interest rate by 25 basis points on the 23rd of July 2020. Mixed reactions continue to play out. Author and Political Analyst, Ralph Matshekga confirmed to Media Bypass that, “the aim is to encourage more economic activities and make it easier for people to access debt and finances.”
Matshekga, like others, is skeptical of the impact that this might have as he concedes that the economy was already ailing pre Covid. If anything, he adds, is that the cut will be a short term measure to ascertain that people can access basic food. The old gave problems of “high unemployment and growing poverty among us still stands, this requires a long term economic policy response,” notes Matshekga.