50 Basis Point Rates CUT. The MPC decision has been amongst other things influenced by the following circumstances:
- International Oil Price which has recently declined significantly
- A Decline in Food Prices,
- Constricted Household consumption since last seen in 1998
- Rate of growth in credit facilities within the private sector which has, to some degree improved as well as an expected slow down in our Current Account deficit due to a decline in oil prices as well as the impact that the International Market turmoil has had on the local South African market.
Though the 100 basis point has been considered it wasn't attractive due to the Reserve Bank's intention with regard to achieving it's primary goal of inflation targeting.
Well,let's hope things will improved in the next few months into 2009!