Repo rate stays at 3.5% as expected

The repurchase (repo) fee of the South African Reserve Financial institution (Sarb) stays unchanged at a document low of three.5%, governor Lesetja Kganyago introduced on Thursday.

It was a extensively anticipated transfer and follows the September assembly of the central financial institution’s Financial Coverage Committee (MPC) this week.

Kganyago mentioned it was a unanimous choice to maintain the repo fee on maintain.

Which means the prime lending fee of economic banks additionally stays at a five-decade low of seven%.

It’s the seventh consecutive time that the MPC has opted to maintain the repo fee on maintain, after slashing charges by 300 foundation factors in whole final yr as a financial coverage measure to assist mitigate the affect of the Covid-19 monetary fallout.

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