Fin24

Interest rates unchanged

2012-09-20 15:21

Cape Town - The Reserve Bank will maintain current interest rates, governor Gill Marcus said on Thursday.

It will leave the repo rate unchanged at 5.0% after a surprise 50 basis-point rate cut in July. The prime lending rate is currently at 8.5%.

July's rate cut was the first interest rate reduction since November 2010.

Marcus earlier said further interest rate cuts will depend on growth and inflation in coming months and should not be taken as a given.

"The monetary policy committee is of the view that a further reduction in the repo rate would not be appropriate at this stage," she said at a televised news conference in Pretoria.

The repo rate is the rate at which commercial banks can borrow money from the Sarb.

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Comments
  • tuco.angeleyes - 2012-09-20 15:59

    I just bought a house . Its still cool but a drop would have been a nice way to kick off my house warming :) But its fair and fine. I still have beef at the gap between the repo rate and the prime lending rate. I can't help but feel robbed somehow.

  • douglas.reid.921 - 2012-09-20 16:12

    Without our privately owned reserve bank we could have interest rates at half of what they are now. But no we need to pay to keep the fat cats fat. Imaging paying half of what you do for your bond, possible without the fat cat middlemen.

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