BUSA welcomes repo rate cut

By Sasha Forbes
25 March 2009

After yesterday’s 100 bases point repo rate cut, Business Unity South Africa (BUSA) is glad to say that they welcome the decision by the Reserve Bank.

“This is a very important decision at this stage, given the fact that we are facing the possibility of a recession and indeed the impact of the global crisis on the South African Economy, so the reduction of interest rates will be of help to the average business person and indeed the consumer to lighten their burden a little,” said BUSA’s CEO Raymond Parsons

The most important point that came out of the Reserve banks statement yesterday was that we can look forward to further reductions over the next few months. “So it holds out the possibility that if present conditions continue to prevail it would be possible to see our interest rate two or three points lower by the middle of 2009,” said Parsons.