South Africa: Government Welcomes Interest Rate Cut

Government has welcomed the South African Reserve Bank’s (SARB) decision to cut the repo rate by 25 basis points to 6.75%, with the prime lending rate now at 10.25%.

“The rate cut is expected to ease pressure on consumers with loans, support small businesses, and encourage investment and economic activity. Government continues to prioritise measures that help reduce the cost of living, create jobs, and improve economic stability,” the Government Communication and Information System (GCIS) said on Thursday.

In its statement, government said the decision aligns with the government’s ongoing efforts to strengthen growth, support vulnerable communities, and build an economy that works for all.

“Government will continue to work with social partners to improve the economic environment and ensure that the benefits of growth reach the poor and those most affected by rising prices,” said the GCIS.

The decision to reduce the repo rate by 25 basis points was announced by the Governor of the SARB, Lesetja Kganyago at the bank’s last Monetary Policy Committee (MPC) meeting of the year.

By SAnews.gov.za.