Reserve Bank cuts repo rate

Die Vryburger

Reserve Bank cuts repo rate
Reserve Bank cuts repo rate - Image - Die Vryburger

In a rather unexpected move, the Reserve Bank cut the lending rate of money by 25 basis points to 6.75%.

This is the first adjustment of the repurchase rate since March 2106.

The Public’s lending rate by banks will decrease from 10.5% to 10.25%.

The rand has reacted differently to the news, by first strengthening, but almost immediately weakening below R13 against the dollar.

However, Reserve Bank president Lesetja Kganyago warned that the fall in interest rates would not necessarily save the economy as the economic climate is not good. He also said that the interest rate could once again increase if inflation starts to escalate.

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