South Africans are hoping for a bit of a reprieve with the dropping of the repo rate when the South African Reserve Bank’s Monetary Policy Committee meets again later this week, but those hopes are likely to be dashed.
According to economists, the interest rate will likely remain unchanged due to soaring inflation.
Stats SA reported that annual consumer inflation quickened in February, rising to 5,6% from 5,3% in January and 5,1% in December.
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As such, economists predict that the repo rate will remain steady at 8.25%.
At the last MPC meeting earlier this year, on 25 January, members of the MPC also left the repo rate unchanged at 8.25%, citing inflation as the main reason for this.
This will means that the prime lending rate of local commercial banks will also remain unchanged at 11.75%.
