Repo rate cut to 6.5%

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

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

JOHANNESBURG - South African Reserve Bank (Sarb) Governor Lesetja Kganyago has announced that the repo rate will be cut by 25 basis points to 6.5%.

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

The decision follows this week's monetary policy committee meeting.

Reserve Bank Governor Lesetja Kganyago: "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 19 July 2019."