In an interview with Bloomberg, South African Reserve Bank (Sarb) deputy governor, Xolile Guma said that South Africa would be looking at whether or not to maintain the stimulus measures implemented in 2008 and 2009, in light of South Africa’s avoidance of the worst effects of the global recession.

Sarb cut interest rates by 5 percentage points between December 2008 and August 2009 to help stimulate an economy that experienced its first recession since 1992. In the last monetary policy committee meeting, held at the end of January 2010, it was decided that the repo rate would remain at 7%, despite calls from certain parties that it should be lowered.

The South African economy is expected to expand by about 2% in 2010 and about 3% in 2011

Reported by Bloomberg