South Africans received two pieces of good news on the eve of the Worker’s Day long weekend: the interest rate decreased by 1 percentage point, and the price of petrol will decrease by 3 c per litre on Wednesday 6 May.
The third 1 % point decrease in three months is excellent news for cash-strapped South Africans, who are starting to feel the effect of the global credit crunch. For the hospitality industry the steady decrease in the interest rate is a welcome relief as the industry goes into the seasonal winter slump between May and August.
While the petrol price decrease is only 3c per litre, it is a welcome reversal of the steadily increasing price of petrol since the beginning of the year. The stronger Rand at the moment may be part of the reason for the reduced petrol price.