# The South African Reserve Bank’s Monetary Policy Committee’s reduction of interest rates by another 25 basis points is the right decision given the low inflation and sluggish gross domestic product growth. This is according to North West University Business School economist, professor Raymond Parsons. He says the lower borrowing costs are positive at a time when the incipient economic recovery is struggling to gain momentum. Parsons warns that further interest rate cuts this year are highly unlikely given the global uncertainty because of US tariffs.
Economist Parsons says SARB’s repo rate cut is the right decision