Repo rate remains unchanged at 7%
South African consumers will heave a sigh of relief after the Reserve Bank announced the repo rate will remain unchanged at 7%.
Reserve Bank governor Lesetja Kganyago made the announcement on Thursday.
This comes after fears in the markets that a third consecutive repo rate hike this year could be the last straw for consumers in light of the burden of increasing food, electricity and fuel costs.
The Reserve Bank has raised the repo rate – the rate at which it lends money to banks – by a cumulative 75 basis points this year, with the latest 25 basis point increase to 7 percent coming in March.
In January the bank had hiked the repo rate by 50 basis points to 6.75 percent.
The prime lending rate, the figure charged by banks to customers, is to also remain unchanged at 10.5 percent.
Banks welcomed the decision.