Reading Time: < 1 minute

SARB Cut Repo Rate Again Early

In a surprise move the SA Reserve Bank (SARB) moved up their May meeting to Mid April and have cut the Repo Rate by another 100 basis points. This means the Repo Rate is now sitting at 4.25%.

4.25%

This will provide further relief for financially stressed debtors and encourage more credit use.

Why?

It is clear that given the current situation the move is clearly linked to the Covid-19 Pandemic and its effect on the Rand and Economy. It is also a move to relieve pressure on consumers who have been in lockdown for a month not earning income to service their debts.

The Rand did something of a wobble after the announcement but has remained around R18/1$.