Governor Gill Marcus presented everyone paying either a mortgage loan or car loan with some great news yesterday , the MPC has cut the repo rate by 50 basis points (0.5%) reducing the rate to 6.5%.  The move was generally unexpected and took the market by surprise , but most South Africans with debt certainy aren’t complaining.

XE.com - TEXT-South African central bank statement on rates

PRETORIA, March 25 (Reuters) - South Africa’s central bank cut its repo rate by 50 basis points to 6.5 percent on Thursday. Below are extracts from the bank’s statement, posted on its website. INTRODUCTION … The MPC has therefore decided to reduce the repurchase rate by 50 basis points to 6.5 percent per annum with effect from 26 March 2010. The MPC will continue to assess developments, and will adjust the monetary policy stance when necessary in order to achieve the …

Bush Radio 89.5 fm Newsroom: Rate cut generally welcomed

The Federation of Unions of South Africa says they are pleased with the Reserve Bank Monetary Policy Committee’s announcement today that the repo rate would be cut by 50 basis points or zero-point-five-percent. … George says the MPC is providing much needed room for monetary stimulus. George added that the economy is struggling with low consumer spending, high unemployment figures and lower personal income tax while the nation currently has a budget deficit. …

Repo Rate Cut « RealPro – Estate Agency

Johannesburg – The South African Reserve Bank’s (Sarb’s) monetary policy committee (MPC) has cut the key points on Thursday, bringing it down to 6.5%, with the prime lending rate dropping to 10%. The repo rate is the rate at which the central … Economists were unsure whether favourable inflation data would sway the MPC to lower rates. Statistics SA said on Wednesday consumer price inflation measured 5.7% year-on-year in February, below Sarb’s upper target range of 6%. …

South Africa: dovish SARB delivers surprise rate cut | Forex Info …

The South African central bank (SARB) announced that the Monetary Policy Committee (MPC) has decided to cut its key policy rate by 50bp, bringing it down to 6.50%. Details The key policy rate was cut by 50bp to 6.50% at the MPC meeting …

South Africa: Central Bank Cuts Interest Rates | Get Some News …

The Reserve Bank’s Monetary Policy Committee (MPC) has cut the repo rate by 50 basis points to 6.5 percent to the delight of many South Africans. Read more here: South Africa: Central Bank Cuts Interest Rates …

Here is an extract from former Governor Tito Mboweni urging the MPC to hold it steady as its not the time to cut in his opinion , fortunately for home and car owners the MPC decided to ignore his advice;

South Africa: Hold It Steady – It is Not the Moment for MPC to …

… thing as an easy interest rate decision, that every time the Bank’s monetary policy committee (MPC) met, it had to make a tough call. See original here: South Africa: Hold It Steady – It is Not the Moment for MPC to Risk a Rate Cut.

The news is certainly welcomed by everyone paying off a mortgage or car loan as well as many in the business sector who feel that an easier monetary stance will help stimulate the economy. The decision to cute rates can be attributed to the revised mandate that the Reserve Bank was given during Finance Minister Gordhan’s budget speech. Organise labour was instrumental in bringing about this policy shift.