Reserve Bank Cuts Interest Rates by 0.25% Bringing Much-needed Relief to South Africans

South African Reserve Bank Governor Lesetja Kganyago has announced another interest rate cut, giving South Africans a slight financial relief.

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The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has reduced the interest rate by 25 basis points (bps) for the first quarter of 2025, lowering the repo rate from 7.75% to 7.50% and the prime lending rate from 11.25% to 11%.

This marks the third consecutive rate cut following a 14-year high, with previous reductions of 25 bps in both September and November 2024. While there were hopes for a 50 bps cut, the decision was not unanimous—four MPC members supported the reduction, while two favoured keeping rates unchanged.

“The committee ultimately agreed that it was possible to reduce the degree of policy restrictiveness, making the stance somewhat more neutral. However, all members were concerned about the uncertain global outlook,”

-Lesetja Kganyago, Reserve Bank Governor

Read the full article here: “Reserve Bank cuts interest rates by 0.25% bringing much-needed relief to South Africans”

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