Better inflation figures gradually translate into lower interest rates
The better news on the inflation front is gradually being translated into lower interest rates, thus modestly easing borrowing costs for businesses and consumers. At its latest meeting, the Monetary Policy Committee (MPC) again – by a four to two vote – cut interest rates by another 25 basis points (bps).
In commenting on the latest decision by the MPC to once more reduce the repo rate by 25 bps, Prof Raymond Parsons, economist from the NWU Business School, says it was widely expected.