Economist urging caution after repo rate cut
An economist is advising consumers to manage additional savings carefully.
The central bank's cut the repo rate by 25 basis points. The reduction, the first in four years, leaves the benchmark repo rate at 8%, with prime now at 11.5%.
FNB economist, Ester Ochse, says the reduction is in line with a global trend of low interest rates.
READ: SARB reduces repo rate
"You are going to be having a little bit of extra money in your pocket, which you can then put towards things like paying off your debt or, alternatively, saving for an emergency.
“Of course, remember if you do have savings, there will be a slightly lower amount that you'll be earning in interest so make sure that you account for that in your budget."
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