Interest rate increases to 10.25%
159 views · Published 22 November 2018 · 2:13 · Indexed 4 October 2026
Channel: SABC News · 2018 · News & Politics
South African Reserve Bank Governor Lesetja Kganyago announced that the interest rate for South Africa will rise by 25 basis points effective tomorrow. Therefore increasing the prime rate to 10.25% from 10%. The prime rate is the rate at which commercial banks lend money to borrowers. This means borrowers will be paying a bit more on their loans, credit cards, and bonds. This is the first hike in two years. The governor says delaying the adjustment could cause inflation expectations to become higher and require a stronger monetary policy response in the future. At this meeting, three members preferred an increase and three members preferred an unchanged stance. Kganyago says their projection model shows a possible further four interest rate hikes by the end of 2020. For more news, visit: sabcnews.com
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