JOHANNESBURG: And the prime lending rate of commercial banks remains at a five-decade low of 7%.
The SA Reserve Bank’s monetary policy committee kept the benchmark interest rate at record lows of 3.5% on Thursday.
The decision, which was unanimous, was in line with market expectations predicting the bank would keep rates steady.
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.