The announcement that the rate would drop by 25 basis points was made by the central bank’s governor Lesetja Kganyago in Pretoria on Thursday afternoon. Kganyago said the decision was unanimous. The governor painted a bleak picture about the state of SA’s struggling economy. He said electricity supply constraints would keep economic activity muted, while business confidence remained weak.
The bank now estimates that SA’s GDP will only expand by 0.4% in 2019. GDP outlooks for 2020 and 2021 were also downgraded to 1.2% and 1.6%.
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