100 basis points repo rate cut

Reserve Bank Governor Tito Mboweni has announced a 100 basis points repo rate cut.

The bank’s monetary policy committee met over the past two days to consider a rate cut. The announcement was made earlier than usual today. The 100 basis point cut is within expectations and is good news for people who have debt and large mortgages.

It is the third cut this year. Which now means the rate at which the Reserve Bank lends money to commercial banks has now been brought down to eight-and-a-half-percent, with the prime lending rate dropping to 12-percent, with effect from Monday