WEDNESDAY, 1.00PM:
RESERVE Bank governor Chris Stals said on Tuesday that a cut in the interest rate before the introduction of the new money market reproduction system on March 9 is unlikely, unless there is a significant change in market conditions.
“With the introduction of the repo system the central bank will be forced to show its hand on interest rates because it is committed to initially posting fixed repos,” Stals said.
The Bank is expecting to set fixed repo rates for the first week of the new system’s operation — thereafter its view on rates will be reflected through its manipulation of the money market’s daily shortage.
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