Unchanged repo rate welcomed

Widespread approval follows Reserve Bank Governor Lesetja Kganyago's decision to keep the rate unchanged.

Newly appointed Reserve Bank governor Lesetja Kganyago at his appointment in Pretoria on 6 October 2014. Picture: Reinart Toerien/EWN

JOHANNESBURG - Banks and homeowners have welcomed a decision to keep the repo rate unchanged at 5.75 percent.

Reserve Bank Governor Lesetja Kganyago cited decreasing fuel prices and a positive inflation outlook as some of the reasons to keep rates unchanged.

Kganyago says despite weakening oil prices and falling food price inflation, the Reserve Bank will remain vigilant, with increasing market pressures in the United States and Europe.

"The general expectation in the market is that these lower prices could persist for some time. Some of the advantages of lower international oil prices have been offset to some extent by a weaker rand exchange rate."

There has been widespread approval of the decision.

Bond originator, Ooba, says this is good news for the residential property market as rates remain low for first-time buyers.

First National Bank was one of the first banks to react to the news, saying the decision gives consumers a breather.