Another Repo Rate Increase
Written by Mfundo on 20 May, 2022
By: Lindelani Mbatha
South African Reserve Bank Governor Lesetja Kganyago has announced a 50 basis point increase to interest rates, putting the repo rate at 4.75%.
The repo rate currently sits at 4.25%, while prime lending is at 7.75%.
This is the rate at which the Reserve Bank lends money to commercial banks in the event of any shortfall of funds.
Kganyago says the rand has since depreciated strongly from April due to the start of policy normalisation in major economies and the slowdown in China’s economy.
He says 4 members of the committee preferred the increase, while another preferred a lower increase.
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