DURBAN - Consumers and businesses who are facing immense financial pressure due to the ongoing lockdown were thrown a lifeline after the South African Reserve Bank (SARB) cut the repo rate by 100 basis points. This takes the repo rate to 4.25% per annum, meaning South Africans will be paying less on their debt.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. Industries such as the property sector, are also likely to benefit as it will make it easier for South Africans to qualify for and pay off loans.
The announcement was the second major cut in less than a month after the central bank cut the rate by one percentage point last month.
The bank also announced via a tweet that the May 2020 meeting of the Monetary Policy Committee (MPC) was moved earlier and will take place today. A media briefing will follow via Zoom to explain the sudden cut.
According to reports the unexpected cut caused the rand, which had been firming during the morning, to weaken from around R18.02/$ to around R18.17/$.
More to follow on this developing story.
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