Finance experts predict another interest rate cut
Updated | By Steve Bhengu
Finance experts have predicted another interest rate cut ahead of an announcement by the Reserve Bank.
We'll hear what it's decided to do with the repo rate later today after the Monetary Policy Committee wraps up its meeting.
The central bank last month cut the rate by 100 basis points, bringing it down to 4.25%.
The prime lending rate stands at 7.75%.
Economist Mike Schussler says another drop will alleviate the financial pressure on consumers, hard hit by the coronavirus lockdown. And he says people need to watch their spending.
READ: Reserve Bank expected to slash rates again
https://www.ecr.co.za/news/news/reserve-bank-expected-slash-rates-again/
"I think the interest rate would have increased a bit again, but as we know oil prices are very low and unlikely to stay there. We know electricity and water prices are going up. The rand is weakening, it might be the second last time, interest rates decline," he said.
He added that people need to keep in mind that they don't want to make too much of a commitment to the low-interest rates because it might come back to bite you
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