Call for rate cut in South Africa

Interest rates in South Africa should be cut, a senior member of the ruling African National Congress (ANC) has argued.

Treasurer-general of the party Mathews Phosa told a meeting of business executives in Johannesburg that the South African central bank should trim its rates in response to the continued downturn in the economy.

Such a move may help lower the cost of mortgages in South Africa, which in turn could save on expenses for those buying property in the country.

Mr Phosa's call was not the only comment from the ANC this week suggesting more rate cuts are warranted.

Speaking after the G20 meeting in London, finance minister Trevor Manuel said: "Unlike in the US and the UK, we have plenty of room for further monetary easing and as inflation continues to fall, so, too, will our interest rates."

The main interest rate in the country currently stands at 9.5 per cent.

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