The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) has cut the repo rate by 100 basis points, Governor Tito Mboweni said on Thursday.
The repo rate now stands at 8,5% while prime has been reduced to 12%.
Domestic output and expenditure growth were declining or negative, Mboweni said.
"The growth outlook is dependent to a significant extent on a broader global recovery," he added.
He said that despite the widening domestic output gap, inflation remained "sticky" but was expected to continue on its downward path.
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