South Africa's central bank on Thursday cut its main interest rate by a full percentage point to 5.25 percent on the back of the deepening impact of the coronavirus outbreak. The announcement was made after the bank's monetary policy committee met for its regular two-monthly meeting and as the country battles to control the virus outbreak which has infected at least 150 people so far.
The committee "decided to cut the repo rate by 100 basis points," said Lesetja Kganyago, governor of the South African Reserve Bank. "This takes the repo rate to 5.25 percent per annum, with effect from 20 March 2020," he said. South Africa, which has recorded the highest numbers of infection in sub-Saharan Africa, slipped into a recession during the final quarter of 2019.
The virus outbreak has only added to the country's economic woes. "The COVID-19 outbreak will have a major health and social impact, and forecasting global and domestic activity presents significant uncertainty," the governor said.
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