NEWS | Repo Rate Holds Steady
South African consumers sighed in relief (and disappointment) in January 2024 as the SA Reserve Bank’s Monetary Policy Committee unanimously decided to hold interest rates steady.
This leaves the current Repo Rate at a 14 year high.
While this is not exactly good news and offers no relief to those with lots of credit, it is not an increase, which might tip many people over the edge, resulting in them losing their assets.
The MPC were quick to point out that although inflation has normalised within their target range, it remains on the upper side of their target and they feel that waiting longer may help. Another factor was the recent snafu with the ports and rail system across SA.
It is possible that reduced loadshedding and lower petrol prices over the year end were contributing factors, and as these look to ramp up in the next few months, the MPC will keep an eye on things to see if they can finally start to cut rates a little.
If you think the repo rate is high, check out what is happening in Nigeria HERE. Their Central Bank is about to push their repo rate to a whopping 22.75%.