Thursday, June 25, 2009

Mboweni surprises with unchanged repo rate

By Mandisi Tyulu
25 June 2009

Reserve Bank Governor Tito Mboweni says all the members of the Monetary Policy committee agreed with the decision to keep the repo rate will remain unchanged at seven-point-five-percent.

This follows cuts of 450 basis points since December.

Commercial interest rates will remain at 11-percent.

Economists had predicted a 50 basis point cut today. While interest rate cuts assist consumers with bonds and debt, it harms savers and the retired on fixed investments.

The decision will infuriate trade unions. Some of them had called for a two-percent lowering

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