nterest Rates Slashed by 1% -This is How It Will Help SA's Economy Knocking 1% off of our repo and interest rates is a big deal. SARB has acted without hesitation, in a bid to lift the economy from the coronavirus gloom. This marks the beginning of a series of financial measures which are designed to ease the immense pressure COVID19 will have on this country's fiscus. As clampdowns are implemented on social activities to limit the spread of the outbreak, businesses face a living nightmare. When rates on home mortgages and credit cards fall, the rates on other savings vehicles fall as well. Keeping interest rates at a low rate for an extended period of time can reduce the number of options the government has to stimulate the economy: The avenue eventually becomes a dead end. These types of cuts have the potential to make it less attractive to save money in South Africa: A fall in the exchange rate makes our exports more competitive and imports more expensive. Thursday's interest rate reduction dwarfs the 0.5% that was taken off back in 2012.But these desperate times call for desperate measures, and on balance, this large decrease is a welcome