Reserve Bank drops repo rate to 5,5% and retail banks immediately announce a cut in prime lending rate to 9%South African Reserve Bank Governor Gill Marcus has announced a 0,5% drop in the interest rate.
Speaking in Pretoria, Marcus said that the continued low inflation rate coupled with the persistent low growth rate had led the monetary policy committee to decide to reduce rates further.
“The domestic economic growth remains fragile,” Marcus told reporters in Pretoria.
The repo rate at 5.5% is the lowest in 3 decades.
SA’s retail banks will cut lending rates following the SA Reserve Bank Monetary Policy Committee’s decision to cut the repo rate by 50 basis points to 5.5%.
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