Will The Reserve Bank Cut The Repo Rate?
On the 28th of March, the Reserve Bank Monetary Policy Committee (MPC) will review the Repo rate (which affects how much % you pay on your credit).
Many economists are saying that consumers could be in for a Repo Rate cut.
The Consumer Price Index puts inflation at a very low 4.4% at the start of the year. Its lowest level since 2015. This is a key factor which the MPC consider when working out whether to raise or drop the Repo Rate.
The Rand has also had a strong showing against a purposely devalued Dollar which has helped offset the recent hike in petrol costs worldwide (and the huge increase in the Petrol Elvy which will soon impact prices countrywide).
The recent positive reaction to the new President and Budget Speech are also considered positive factors towards a possible rate cut.
Good For Investment Ratings?
A cut in Repo Rate and the recent political developments may prompt the rating agencies to consider a positive change in the current ‘Junk’ status which has hit SA’s investment potential. At present, only Moody’s has rated SA as somewhat investment worthy (at high risk).
Repo Rate Remains at 6.75% The Monetary Policy Committee (MPC) has decided to keep the Repo Rate (the rate at which the Reserve Bank loan the other banks money at) the same. The announcement was not met with surprise, as … read more
Repo Rate Remains the Same The Repo Rate (set by the SA Reserve Bank) affects the rates that banks and other credit providers can charge consumers as a maximum (they mostly charge the maximum don’t they?). This month saw the latest … read more
Repo Rate Remains Stable The Monetary Policy Committee (MPC)of the SA Reserve Bank have met and considered the many factors weighing on the economy and the Reserve Bank Governor has announced that the interest rate will remain stable at 7%. … read more
Will the Repo Rate Go Up? This week the Monetary Policy Committee (MPC) will me to discuss the Repo Rate (the rate that the SA Reserve Bank lend out money to other SA banks at – other interest from these … read more
Repo Rate Stays The Same It was good news for consumers as the Reserve bank Governor Lesetja Kganyago today announced that the Repo Rate (the rate that banks borrow money at) will remain the same for now. This is good … read more
Repo Rate Unchanged The Reserve Bank have announced that the Repo Rate (off which all your other credit rates are normally calculated) will remain unchanged at 7%. Reserve Bank Governor Lesetja Kganyago announced this week that the rate , which … read more
Repo Rate Up Once More This month the Repo Rate went up by another 25 basis points or 0.25% meaning the Repo Rate is now 7%. In March, Reserve Bank Governor Lesetja Kganyago announced that due to pressures on the … read more
Reserve Bank Push Up Repo Rate The SARB Monetary Policy Committee announced this week that the Repo Rate was going up by 50 Base Points. There had been an expectation of a rate hike but the debate had been in … read more