Reserve Bank President Lesetja Kganyago announced a fall in interest rates on Thursday.
Kganyago said the repo rate dropped by 100 basis points to 5.25%. The repo rate is the rate at which the Reserve Bank lends money to commercial banks.
The decision comes after this week’s Monetary Policy Committee meeting. Kganyago attributed the decline to a fragile local economic outlook. The fall comes into effect on March 20, 2020.
He said inflation is under control and no surprises are expected.
This is the second fall this year after the repo rate was lowered by 25 basis points in January to 6.25%.
The rand was trading at R17,22 / $, R18,58 / € and R20,04 / £ on Thursday.
Capitec Bank declined on Thursday for the second day in a row.
The bank’s share price fell from R1 076.61 to as low as R539.86 within two days. It has since recovered to R682.93.
Most South African stocker were in the red on Thursday.