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The Inkatha Freedom Party has welcomed Reserve Bank Governor Tito
Mboweni's decision today to lower interest rates by 50 basis points.

"The interest rate cut is a welcome relief for struggling South
Africans. The current international economic conditions coupled with
the recession has seen many poor South Africans falling further into
abject poverty - whilst middle income families have been struggling to
keep food on the table and keeping up with bond and other loan
repayments," said Narend Singh, the IFP's economic spokesperson.

Singh said that today's rate cut will go some way in helping the
domestic economy to recover and has called on the monetary policy
committee to cut interest rates further.

"For those individuals with bonds and loan repayments today's interest
rate cut will free more money to spend on goods and services - which
in turn will reduce the decline in demand. This will provide work for
workers producing those commodities, which will stimulate and assist
with the recovery of our economy. It is therefore crucial that the
Reserve Bank cut interest rates further when they meet again," said
Singh.