Breaking: Repo rate cut by 50bps

The South African Reserve Bank (Sarb) cut its repo rate by another 50 basis points to 3.75% on Thursday, taking the prime commercial lending rate to 7.25%.

Sarb governor, Lesetja Kganyago, announced the decision following the bank’s 3-day Monetary Policy Committee (MPC) meeting in Pretoria.

This takes the bank’s total repo rate cuts this year to 275 basis points or 2.75%, as it slashes rates in the face of Covid-19 economic fallout. The latest MPC meeting follows the bank calling an emergency MPC in April, where it announced a surprise 100 basis points cut.