Repo Rate Unchanged
The SA Reserve Bank’s (SARB) monetary policy committee this month decided to leave the repo rate unchanged at 6.5%.
The repo rate is the rate that the SARB lends money to the various banks. They in turn put on a mark up when they lend to the public. This is known as the prime rate. Due to the repo rate being unchanged the prime rate will remain at 10.25%.
The MPC said that several factors influenced their unanimous decision including slightly higher than anticipated inflation, the attacks on the oil supply in Saudi and the volatility of the Rand which have been influenced by recent cuts in rates in the USA.