Repo rate cut by 25 points to 6,5%
Interest rates have been cut by 25 basis points.
This is the first rates cut since March last year.
Banks will now borrow from the Reserve Bank at a rate of 6.5 %.
The banks will lend us money at 10%
Reserve Bank Governor Lesetja Kganyago says during a three-day sitting by the bank's Monetary Policy Committee - a number of factors were considered - such as the strengthening of the Rand - despite the threat that power cuts and strikes posed.
"Food, electricity, and water prices also remain important risks to the inflation outlook. Against this backdrop, the MPC unanimously decided to reduce the repurchase rate by 25-basis points to 6,5% per annum with effect from July 19, 2019," Kganyago said.
