At the March meeting of the Monetary Policy Committee (MPC), we reduced the repurchase rate (repo rate) by 100 basis points. We then held an emergency MPC meeting in April, using new forecasts that incorporated the lockdown, and cut the repo rate by another 100 basis points. In May, we cut it by a further 50 basis points.
Not only did the liberalisation of the markets bring greater competition for the traditional domestic South African banks, but they were also more exposed to the vicissitudes of volatile international capital movements. Our banks were forced to adopt a more open and global attitude in the daily management of their activities.