Johannesburg - South Africa's major banks have followed the Reserve Bank and have increased their lending rates by 50 basis points.
This follows the decision by the central bank's Monetary Policy Committee on Thursday to increase the repo rate by 50 basis points to 8% with immediate effect.
Nedbank said it would increase its prime lending rate and new home loan rate to 11.5% with effect from Friday August 4. Its rate on new home loans will rise on August 7. The increases also apply to Old Mutual Bank and Pick n Pay Go Banking.
ABSA's adjustment to the prime overdraft rate is effective from Friday, while its mortgage rates will be increased from Friday for new business and from Monday for existing business.
Standard Bank's increases - for new and existing clients - will be effective from Saturday August 5, while FNB's increases are effective from Monday.