BREAKING NEWS: Interest Rates Kept Unchanged by SA Reserve Bank - Prime Rate Remains 11%

The South African Reserve Bank Governor, Lesetja Kganyago, said that the MPC (Monetary Policy Committee)decided to hold the benchmark interest rate at 7.5%, after three consecutive quarter-point cuts. A monthly bond repayment on a R1 million bond, would therefore remain at R10 332 per month - based on a prime rate of 11%

That means that the prime interest rate will remain at 11%.

While there are strong reasons for the MPC to reduce borrowing costs, including a struggling economy and the inflation rate remaining steady at 3.2% in February — and coming in slightly lower than the 3.4% economists expected — “global factors probably weighed more” and caused the MPC policymakers to wait for the “dust to settle”.