SARB decides on Interest Rate Cut of 100 Points
The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) decided to ease the level of the local Repo Rate and dropped it by 100 Basis Points. It is therefore from today 5.25%, translating to a prime lending rate of 8.75%, which brought the country’s prime lending rate to levels last seen around 2013.
It was a bold move by the South African Reserve Bank, and shows that SARB realises the devastating impact that the coronavirus will have on the economy. It was reported that the decision was unanimous, and it hoped it would go some way in easing financial pressure on households and firms, improving resilience.
The last time the interest rate was cut by a full percentage point in one meeting was in 2009, during the global recession.
For Homeowners with a Mortgage Bond this is a welcomed relief as it saves R 650.00 per Million Rand Bond per month!