Discussion | Unpacking the MPC decision on interest rates

JOHANNESBURG - Reserve Bank Govenor Lesetja Kganyago has announced a 25 basis point rate cut.

The repo rate now falls from 8% to 7.75%. This means the prime lending rate will drop from 11.5% to 11.25%.

READ: Reserve Bank cuts interest rates by 25 basis points

Kganyago said the decision to only cut the interest rate by a modest quarter percentage point was unanimous.

Development economist Phelisa Nkomo discussed what this means with eNCA.