Share

SA Reserve Bank cuts repo rate for first time in more than a year

The SA Reserve Bank's monetary policy committee has cut the benchmark repo rate by 25 basis points to 6.5% from 6.75%. 

This is the first time since March 2018 that the benchmark interest rate has been cut. 

The central bank's governor Lesetja Kganyago made the announcement at a media briefing in Pretoria on Thursday afternoon. The cut will come into effect on July 19. The decision was unanimous. 

The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. Changes in the repo rate affect the prime lending rate, which is the lowest rate at which banks start lending to clients.  With the repo rate down, the prime lending rate will decline to 10% from 10.25%.

Kganyago's decision was widely anticipated by analysts. In a Bloomberg survey 18 out of 22 economists predict a cut. 

The governor said that, based on short term indicators, a rebound of GDP is expected in the second quarter of the year. This after GDP contracted by 3.2% in the first three months of the year. 

He said that the central bank now expects SA's economy to grow by 0.6% in 2019. 

    We live in a world where facts and fiction get blurred
    Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
    Join News24 today
    heading
    description
    username
    Show Comments ()
    Rand - Dollar
    19.00
    -0.3%
    Rand - Pound
    24.10
    +0.0%
    Rand - Euro
    20.60
    -0.0%
    Rand - Aus dollar
    12.37
    +0.5%
    Rand - Yen
    0.13
    +0.6%
    Platinum
    901.60
    -0.1%
    Palladium
    998.41
    -0.8%
    Gold
    2,154.49
    -0.3%
    Silver
    24.94
    -0.4%
    Brent Crude
    86.89
    +1.8%
    Top 40
    65,626
    -0.9%
    All Share
    71,847
    -0.8%
    Resource 10
    52,847
    -0.9%
    Industrial 25
    99,290
    -1.2%
    Financial 15
    16,552
    -0.4%
    All JSE data delayed by at least 15 minutes Iress logo
    Company Snapshot
    Editorial feedback and complaints

    Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

    LEARN MORE
    Government tenders

    Find public sector tender opportunities in South Africa here.

    Government tenders
    This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
    Browse tenders