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SA Reserve Bank Cut Rates Another 100 Basis Points - Prime Rate Down To 7.75%

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SA Reserve Bank Cut Rates Another 100 Basis Points - Prime Rate Down To 7.75%

The SA Reserve Bank has cut the repo rate by 100 basis points, or one percentage point. This brings SA's repo rate to 4.25%.

How will this affect your pocket?

For first time and buyers in the affordable property market - and on a ๐ก๐จ๐ฆ๐ž ๐ฅ๐จ๐š๐ง ๐จ๐Ÿ ๐‘๐Ÿ•๐ŸŽ๐ŸŽ ๐ŸŽ๐ŸŽ๐ŸŽ, repayable at a prime interest rate of 8.75% over 20 years, your payment would have been

R6,185.97. It will now be R5 746.64 - ๐ฌ๐ข๐ ๐ง๐ข๐Ÿ๐ฒ๐ข๐ง๐  ๐š ๐ซ๐ž๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐‘๐Ÿ’๐Ÿ‘๐Ÿ—.๐Ÿ‘๐Ÿ‘ ๐ฉ๐ฆ.

On a ๐ก๐จ๐ฆ๐ž ๐ฅ๐จ๐š๐ง ๐จ๐Ÿ ๐‘๐Ÿ ๐ŸŽ๐ŸŽ๐ŸŽ ๐ŸŽ๐ŸŽ๐ŸŽ, repayable at a prime interest rate of 8.75% over 20 years, your payment would have been R8,837.11. It will now be R8,209.49, ๐ฌ๐ข๐ ๐ง๐ข๐Ÿ๐ฒ๐ข๐ง๐  ๐š ๐ซ๐ž๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐‘๐Ÿ”๐Ÿ๐Ÿ•.๐Ÿ”๐Ÿ ๐ฉ๐ฆ.

On a ๐ก๐จ๐ฆ๐ž ๐ฅ๐จ๐š๐ง ๐จ๐Ÿ ๐‘๐Ÿ ๐ŸŽ๐ŸŽ๐ŸŽ ๐ŸŽ๐ŸŽ๐ŸŽ, repayable at a prime interest rate of 8.75% over 20 years, your payment would have been R17 674.21. It will now be R16 418.97, ๐ฌ๐ข๐ ๐ง๐ข๐Ÿ๐ฒ๐ข๐ง๐  ๐š ๐ซ๐ž๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐‘๐Ÿ ๐Ÿ๐Ÿ“๐Ÿ“,๐Ÿ๐Ÿ’ ๐ฉ๐ฆ.

Tuesday's announcement was the second major cut in less than a month, after the central bank cut the rate by one percentage point in mid-March.

"The May 2020 meeting of the MPC was moved earlier and took place today [Tuesday]," the bank said in a tweet.

The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks.

The unexpected cut cause the rand, which had been firming during the morning, to weaken from around R18.02/$ to around R18.17/$.

The bank's Monetary Policy Committee is set to host a media briefing via Zoom on Tuesday morning to explain the sudden cut.

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Author Fin24
Published 14 Apr 2020 / Views -
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