Repo Rate Changes For the First Time This Year

The Reserve Bank’s Monetary Policy Committee (MPC) today announced it has increased the repurchase rates by 25 basis points. this means that the Repo Rate is now 6%.

It seems that the warnings coming from the office of the Reserve Bank about increasing pressure to increase the repurchase rate in the face of a weaker Rand and poor performing economy were warranted.

This smaller increase or 0.25% is compounded for consumers by the way bank lending rates work and so consumers will see an increase in the cost of their credit of half a percent. Economists warn this could be the first of several hikes in the months to come.

Repo Rate: 6%