Interest rate 'likely' to fall further next year
If all goes well, South Africans will likely see more interest rate cuts next year.
That's according to an economist who's been reacting to the Reserve Bank’s decision to cut the repo rate by 25 basis points to 7.75% on Thursday.
This means that the prime lending rate will be 11.25 per cent.
Interest rates have dropped by a total of 50 basis points over the past two meetings of the Monetary Policy Committee.
In September, the country saw the first-rate reduction in four months.
Chief Economist at the Efficient Group, Dawie Roodt, says the cut will boost our economy.
"It's likely to lead to some economic growth. My expectations are for the Reserve Bank to cut by at least 75 basis points next year, which means a 7.5% reduction in interest rates can be expected. It could even be a full 100 basis points reduction.
"One has to be cautious and remember that things can go wrong. The rand can suddenly come under pressure, or there can be some kind of international crisis."
