Reading Time: < 1 minute

Finance News

In another round of good news for people who owe lots of money on South Africa the SA Reserve Bank’s Monetary Policy Committee cut the repo rate (used to lend banks money) by 0.25 basis points.

This means people will be paying less interest on bonds, credit cards, cars and other finance.

With the US Dollar being a bit low and the Rand making small gains and with SA weathering the displeasure of the US president (for now) the MPC felt that they could risk dropping the rate again. SA even got of the international grey list, had a ratings increase and handled the G20 situation well.

This takes rates back to levels last seen in 2021 in late pandemic times. In June 2024 rates were at 8.5% and have progressively been dropping till they are now at 6.75%.

Though the SARB have targeted lower inflation goals they have given themselves a little wiggle room so that they can experiment a little, like with this cut.