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MPC To Announce Repo Rate in Jan 2020

The SA Reserve Bank Monetary Policy Committee is set to announce if the Repo Rate (at which the banks borrow money) will stay the same or change.

Predicted To Stay The Same

Most people expect the rate to stay the same for the moment. This is because many of the same factors that made the MPC keep the rate unchanged late last year remain in place.

The Rand was going up and up in value for a while but was then hit by a big drop back to where it had been once Eskom started revealing how bad things are and are likely to be in the near future. Consumer confidence is also at a real low with growth projections getting smaller and smaller every time someone makes an announcement of their outlook.

It May Change As Things Get Worse Later In The Year

It is therefore likely that the rate will remain the same until after the 2020 Budget Speech (in Feb) and the predicted coming Moody’s downgrade (to “junk” status).

2020 is set to be a tough year for local business and consumers with job losses, price hikes and slow economic growth (if not recession) ahead.