WATCH LIVE: Reserve Bank governor announces changes to repo rate
JOHANNESBURG - The South African Reserve Bank (Sarb) governor Lesetja Kganyago is announcing the latest decision on interest rates for the country.
The decision follows the three-day meeting of the Sarb's Monetary Policy Committee (MPC) which Kganyago chairs.
Earlier this year, in May, Kganyago, slashed the rate by 50 basis points, which took the repo rate to 3.75% per annum and the prime lending rate was adjusted to 7.25%.
Kganyago said that Sarb would be cutting the repo rate by 25 basis points, which takes the repo rate to 3.50% per annum.
This means that the prime lending rate in South Africa will be adjusted to a historic 7%.
Ahead of the announcement, a survey of 16 analysts surveyed by Bloomberg expect the South African Reserve Bank to cut the repurchase rate by 25 basis points.
“We are expecting the SARB to cut interest rates by another 25bps today in an effort to support the ailing economy, while the US will release initial jobless claims this afternoon,” Bianca Botes, executive director at Peregrine Treasury Solutions, says in an emailed note.