Cape Coastal Homes Logo
You are here: Cape Coastal Homes / Latest News / Reserve Bank Drops Repo Rate Home Loans Prime Interest Rate Now 10

Reserve Bank Drops Repo Rate - Home Loans Prime Interest Rate Now 10%

SHOWING ARTICLE 330 OF 1096
GALLERY

Reserve Bank Drops Repo Rate - Home Loans Prime Interest Rate Now 10%

The SA Reserve Bank's monetary policy committee has cut the benchmark repo rate by 25 basis points to 6.5% from 6.75%. 

This is the first time since March 2018 that the benchmark interest rate has been cut. 

The central bank's governor Lesetja Kganyago made the announcement at a media briefing in Pretoria on Thursday afternoon. The cut will come into effect on July 19. The decision was unanimous. 

The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. Changes in the repo rate affect the prime lending rate, which is the lowest rate at which banks start lending to clients.  With the repo rate down, the prime lending rate will decline to 10% from 10.25%.

Kganyago's decision was widely anticipated by analysts. In a Bloomberg survey 18 out of 22 economists predict a cut. 

The governor said that, based on short term indicators, a rebound of GDP is expected in the second quarter of the year. This after GDP contracted by 3.2% in the first three months of the year. 

He said that the central bank now expects SA's economy to grow by 0.6% in 2019. 

Author Fin24
Published 18 Jul 2019 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Cape Coastal Homes website is accurate and up to date, Cape Coastal Homes makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.