SA Reserve Bank governor Tito Mboweni said on Thursday afternoon that the repo rate would be lowered to 8,50 per cent. Nedcor and FNB were the first banks to lower their prime lending rate from 13,5 to 12 per cent with effect from Monday.
South African Reserve Bank governor Tito Mboweni said on Thursday afternooon that the repo rate would be lowered to 8,50 per cent. Nedcor and FNB were the first banks to lower their prime lending rate from 13,5 to 12 per cent with effect from Monday.
Mboweni made the announcement at the end of the two-day meeting by the SARB’s Monetary Policy Committee (MPC), reported. This is the fourth cut so far this year, after the bank cut rates by 150 basis points in June, 100 basis points in August and 100 basis points in September.
The repo rate, at 8,50 per cent is now at its lowest rate since the repo system was introduced in March 1998.
First National Bank was the first of the major retail banks to match the Reserve Bank’s cut. Its prime lending rate is coming down from 13.5 to 12 per cent with effect from Monday. The adjustment will take effect on all prime rate linked products.
Nedcor has also cut its prime rate to 12 per cent, effective from Monday. The cut applies to both new and existing customers. Banks in the Nedcor stable include Nedbank, Peoples Bank and Old Mutual Bank.
