The SA Reserve Bank’s decision to keep the repo rate unchanged at 3.5 percent and prime lending rate at 7 percent eases pressure debt burden for businesses and consumers. Photographer: Waldo Swiegers/Bloomberg
The SA Reserve Bank’s decision to keep the repo rate unchanged at 3.5 percent and prime lending rate at 7 percent eases pressure debt burden for businesses and consumers. Photographer: Waldo Swiegers/Bloomberg

SARB rates announcement to benefit SMEs

By Opinion Time of article published Jan 21, 2021

Share this article:

The South African Reserve Bank’s decision to keep the repo rate unchanged at a record low of 3.5 percent and prime lending rate at 7 percent eases pressure on the ailing economy and debt burden for businesses and consumers.

This will help to support SMEs who continue to struggle financially due to the persistent impact of Covid-19, while trying to recover as quickly as possible.

For those sectors that have been hardest hit, keeping rates on hold will go a long way to help them stay afloat.

This further provides an incentive for SMEs to consider options as they attempt to return to normal levels of operations or explore alternative opportunities.

While it remains impossible to predict how the Covid-19 pandemic will play out in 2021, businesses should use this time to re-evaluate their strategies, recovery plans and cash flow requirements.

Palesa Mabasa, FNB Gauteng South West, Segment Head

BUSINESS REPORT ONLINE

Share this article:

Related Articles