RTTNews - Thursday, the Monetary Policy Committee of the South African Reserve Bank reduced the repurchase rate by 100 basis points to 7.5% per annum with effect from May 29.

Governor Tito Mboweni said CPI inflation forecast remained relatively unchanged for the near-term from the previous MPC meeting. The central bank expects downward trend in inflation to continue.

At the same time, the negative trend in GDP growth is likely to continue during the second quarter of 2009, although at a more moderate pace of contraction, Mboweni added.

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