South African Reserve Bank (SARB) Governor Lesetja Kganyago today announced a cut in the repurchase rate (repo rate) for the country.
Kganyago said the central bank is cutting the repo rate by 25 basis points (BPS), meaning rates will come down by 0.25%.
The repo rate will now be at 8% while the prime lending rate will come down to 11.50%.
Before todays announcement, the repo rate stood at a 14-year high of 8.25% and the prime lending rate at 11.75%.
Kganyago said that members of the SARBs Monetary Policy Committee (MPC) deliberated over a 25 BPS and a 50 BPS but decided to take a more conservative stance with a 25BPS cut. He said that it was a unanimous decision.
