We called this one – 100 basis points
So the couch economist has so far, in his relatively short career (12 months), called every move that SARB and the MPC in particular have made. Interesting was the commentary that said that Tito had arrived “guns blazing” for a 200 basis point cut in the rate.
The positive side about this comment is that the MPC clearly can see that we need to be making changes in interest rates in accordance with the rest of the world. Secondly he saw the gap to make this step.
Of concern is why the rest of the committee felt that this would not be wise. There must be some underlying fundamental data that pointed to the fact that a cut of 200 basis points would have been too much. It would be great to see commentary around this and perhaps understanding on why they did not go for the 200 point cut.
Never-the-less that 1.5% in two meetings with signs of more to come so spend it wisely, better still keep hammering away at that outstanding debt and then reap the benefits of more disposable income!