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QUOTE:

The South African Chamber of Commerce and Industry (SACCI) welcomes the reduction in the repurchase rate of 50 basis points. This clearly demonstrates an awareness of the need to stimulate the economy despite the threats to the inflation associated in the main with increases in administered prices.

SACCI believes that the lower rate will assist its members, particularly SMMEs, who are still vulnerable despite the hesitant recovery of the country from the recent global economic downturn. It will also assist consumers who are burdened with high levels of debt.

SACCI is aware, however, of the need to be vigilant and to protect the inflation target. It therefore supports the MPC in its continued assessment of developments, and the adjustment of the monetary policy stance when necessary in order to keep within the inflation target range.