Reserve Bank cuts repo rate by 25 basis points to 6.75%

This comes after the repo rate has remained unchanged at 7% since March 2016.

FILE: South African Reserve Bank governor Lesetja Kganyago. Picture: AFP.

PRETORIA – South African Reserve Bank (Sarb) Governor Lesetja Kganyago announced on Thursday that the repo rate would be cut by 25 basis points to 6.75%.

The repo rate is the rate at which the central bank lends money to banks.

The prime lending rate, which is the interest charged by banks to clients, will drop from 10.5% to 10.25%.

The announcement comes after a meeting of the Monetary Policy Committee in Pretoria.

Economists widely expected the bank to keep rates on hold, which has been the case for the past 16 months.