Why slow repo rate easing is apt

This week's announcement by the monetary policy committee of the South African Reserve Bank (Sarb) to cut the repo rate by 25 basis points may not have been by as much as most people wanted, but the conservative approach could have a positive impact down the line as we are still living in uncertain economic times.

While many were calling for a cut of 50 basis points following inflation falling to more than a four-year low for October, the decision by Sarb to be cautious now could result in rates easing further in the future.