Rate cut brings consumer relief

THE South African Reserve Bank’s (SARB’s) decision to cut the prime lending rate by 0.25 percentage points to 10.5% was widely expected but still brought relief to consumers as inflation continues its slow rise.

- NICOLA MAWSON AND GIVEN MAJOLA

Governor Lesetja Kganyago yesterday said the Monetary Policy Committee had voted unanimously for the cut in a stable inflationary environment.

This was the fifth reduction since September, with a cumulative 1.25 percentage point drop.

The move is aligned with a cautious global trend toward stimulating consumer spending and investment, says Bradd Bendall, the national head of sales at BetterBond.

“Homeowners will welcome today’s decision to drop the prime lending rate to 10.5% - a level last seen in 2022,” Bendall said.

He added that a lower prime lending rate provides much-needed relief to consumers and homeowners struggling to balance their monthly obligations with rising living expenses.