National
SARB reduces repo rate─── EARL COETZEE 15:46 Thu, 20 Jul 2017
Johannesburg - SA Reserve Bank governor, Lesetja Kganyago, has just announced a cut in the repo rate of 0.25%, to 6.75%.
The repo rate is the interest rate at which the SARB lends money to commercial banks. The prime cost of borrowing thus comes down to 10.25%.
This is the first rate cut in 15 months, and coincides with the European Central Bank this morning leaving their interest rates unchanged. Kganyago says domestic growth outlook remains a concern, and economic growth figures were revised from 1% to 0.5% for this year.
Economists yesterday predicted a possible reduction in interest rates, after the slight drop in inflation figures.
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