The Reserve Bank has trimmed another 25 basis points off the repo rate – a quarter of a per cent – taking it down to 6.75%.
The prime rate offered by the banks falls to 10.25%.
It’s the fourth such cut this year and the decision was unanimous.
Speaking after the rate cut announcement, Reserve Bank governor Lesetja Kganyago saiid it has been a turbulent year for the global economy, but in emerging markets – unlike major economies – inflation had eased.
Meanwhile, in Johannesburg, a top American business leader has praised South Africa’s business ambition, sophistication and knowledge.
Gary Litman was speaking at the B20 business summit, ahead of this weekend’s G20 leaders’ summit.
He’s especially notable because not only is he vice president of the US Chamber of Commerce – the largest business organisation in the world – he also takes over as the next B20 sherpa from South Africa’s current sherpa, Cas Coovadia.
‘Sherpa’ is diplomat slang for organiser – usually, the person or persons who do all the prep work behind the scenes ahead of the leader’s arrival.
Litman told the audience that the distinction between the Global North and the Global South is no longer that important.
Worth noting that while Donald Trump has banned all US government officials from attending the G20 summit, the US Chamber of Commerce had a very large number of members at the B20.
Litman said it was the role of bodies like the B20 to make political leaders understand why they need to allow companies to achieve their business goals.
Perhaps he’ll take that message back to Washington?
And on that note, South Africa’s table grape industry is to make an urgent appeal to the US trade representative for the inclusion of our table grapes in the recent easing of certain tariffs.
It also wants to clarify how the recent exemptions were determined.
South African oranges, originally on the tariff list, were excluded – grapes were left on.
On the markets, the JSE All Share closed slightly softer – down a tenth of a per cent – the Top 40 down a quarter.
London’s FTSE was up about the same.
But in New York, the brakes have gone on: the Dow was down 0.8% – the S&P 500 down 1.6% and the Nasdaq down 2.2%.
Tokyo this morning is down 2.2% – ditto Hong Kong and Sydney down 1.5%.
The US dollar is unchanged at $1.15 to the euro – the rand is easier: R17.25 to the dollar, R19.89 to the euro and R22.57 to sterling.
Gold – $4,054 – platinum $1,514 – Brent Crude oil – just over 62.50 and Bitcoin – down another 5% to $85,900.
