Slight relief expected as interest rates cut: FNB
South African consumers are breathing a sigh of relief this morning. The SA Reserve Bank's Monetary Policy Committee announced yesterday that the Repo Rate would be cut by 25 basis points.
Those cuts come into play today - meaning the Repo Rate is now at 6.5 percent.
FNB says the cut will bring some relief to consumers - who have been under pressure for several months now.
CEO Jacques Celliers says they're looking forward to improved conditions later in the year - based on the expectations of a good rebound after the GDP contracted in the first quarter.
Celliers agrees with the Reserve Bank's comment that interest rates alone are not a primary driver of the economy - and consumers will have to continue to manage their expenses prudently.
NOW READ: Repo rate cut by 25 points to 6,5%
With the Repo Rate down to 6.5 percent - prime lending now comes in at 10-percent. The Repo Rate is the rate at which the Reserve Bank lends money to other banks.
