The South African Reserve Bank (SARB) has announced a cut to the repo rate by 25 basis points, bringing it down to 7%. This means the prime lending rate \u2013 the rate banks charge customers \u2013 drops to 10.5%.<\/p>\n\n\n\n
The decision was announced by Reserve Bank Governor Lesetja Kganyago after the Monetary Policy Committee (MPC) met this week. The vote was unanimous.<\/p>\n\n\n\n
Why Did They Cut the Rate?<\/strong><\/p>\n\n\n\n The Reserve Bank says the economy is still under pressure despite signs of improvement in the second quarter of 2025.<\/p>\n\n\n\n Economic growth remains slow because of problems in logistics and other supply issues.<\/p>\n\n\n\n Business and consumer confidence has been weak for most of the year.<\/p>\n\n\n\n Inflation has been low, averaging about 3.3% this year, but is expected to rise slightly in the coming months.<\/p>\n\n\n\n With these factors in mind, the MPC decided to ease borrowing costs to support households and businesses.<\/p>\n\n\n\n What Does This Mean for You?<\/strong><\/p>\n\n\n\n Home Loans and Vehicle Finance: Monthly repayments may go down slightly.<\/p>\n\n\n\n Personal Loans and Credit: Interest on existing and new loans could be lower.<\/p>\n\n\n\n Savings: Interest earned on savings accounts may decrease.<\/p>\n\n\n\n The cut comes as families continue to feel the pressure of rising living costs. <\/p>\n\n\n\n For many Diepsloot residents, this could bring some relief on loans and credit.<\/p>\n\n\n\n New Inflation Target Kganyago also revealed that the Reserve Bank is considering a new inflation target of 3%, down from the current range of 3%\u20136%.<\/p>\n\n\n\n He says this would help keep prices stable in the long term and strengthen the rand.<\/p>\n\n\n\n \u201cWith actual inflation close to 3%, we want to take the opportunity to achieve permanently lower inflation,\u201d Kganyago said.<\/p>\n\n\n\n The SARB will work with National Treasury on these reforms.<\/p>\n","protected":false},"excerpt":{"rendered":" The South African Reserve Bank (SARB) has announced a cut to the repo rate by 25 basis points, bringing it down to 7%. This means the prime lending rate \u2013… <\/p>\n","protected":false},"author":1,"featured_media":1770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,6],"tags":[],"class_list":["post-1769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-community-news"],"_links":{"self":[{"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/posts\/1769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1769"}],"version-history":[{"count":1,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/posts\/1769\/revisions"}],"predecessor-version":[{"id":1771,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/posts\/1769\/revisions\/1771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=\/wp\/v2\/media\/1770"}],"wp:attachment":[{"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diepslootnews.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}