Reserve Bank cuts interest rates, gives boost to indebted consumers

Indebted South African consumers get a boost as the Reserve Bank’s Monetary Policy Committee (MPC) cuts interest rates by 25 basis points, in line with expert predictions.

The repo rate now stands at 8%  and the prime lending rate at 11.5%.

This marks the first rate cut in four years. Rates remain at their highest level in 15 years.

Central Bank Governor Lesetja Kganyago confirms the decision following SARB’s September Monetary Policy Committee meeting in Pretoria.

“The MPC decided to keep the repo rate unchanged at 8.25%. Four members preferred an unchanged stance, and two preferred a reduction of 25 basis points,” says Kganyago.

The widely expected move aligns with expectations from most economists and market watchers.

VIDEO | Reserve Bank MPC interest rate announcement:

INFOGRAPHIC: Headline CPI, Food CPI and Electricity CPI