Repo rate stays at 3.5% as expected

The repurchase (repo) rate of the South African Reserve Bank (Sarb) remains unchanged at a record low of 3.5%, governor Lesetja Kganyago announced on Thursday.

It was a widely expected move and follows the September meeting of the central bank’s Monetary Policy Committee (MPC) this week.

Kganyago said it was a unanimous decision to keep the repo rate on hold.

This means that the prime lending rate of commercial banks also remains at a five-decade low of 7%.

It is the seventh consecutive time that the MPC has opted to keep the repo rate on hold, after slashing rates by 300 basis points in total last year as a monetary policy measure to help mitigate the impact of the Covid-19 financial fallout.

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Source: moneyweb.co.za