Sarb slashes interest rates by a larger-than-expected 100 basis points to shield economy against COVID-19 fallout

Highlights _________________________________________________________________________________ • The South African Reserve Bank (Sarb) Monetary Policy Committee (MPC) slashed interest rates by a larger-than-expected 100 basis points to 5.25% at the March 2020 interest rate-setting meeting. • The Sarb acknowledged significant downgrades to expected global economic activity due to the outbreak and spread of COVID-19. • Significant downside adjustments to the Sarb’s economic growth outlook (1% weaker for 2020 and 0.6% lower for 2021 relative…

Outlook amidst the chaos: The current situation

Nazmeera Moola Head of SA Investments (Ninety One) After several weeks of complacency, financial markets tipped into full-blown panic on 24 February as Covid-19 continued to spread. As a result of the virus, markets are scrambling to price in the impact on the global economy of both a supply shock and demand shock. The supply shock is driven by the closure of a large portion of Chinese manufacturing capacity for…