Government says long-overdue repo rate cut will ease the cost-of-living squeeze

The government has welcomed the Reserve Bank’s decision to cut the interest rate by 25 basis points, saying it will ease pressure on households and support small businesses.

This comes after the Reserve Bank announced that the repo rate is now 6.75% and the prime lending rate has been lowered to 10.25%. The government said the move aligns with its efforts to reduce the cost of living, create jobs, and strengthen economic stability, particularly for vulnerable communities.

The move has also been welcomed by business leaders and economists, who said the rate cut is likely to ease borrowing costs, support small businesses, and boost consumer and investor confidence.

"Government welcomes the decision by the South African Reserve Bank’s Monetary Policy Committee to cut the interest rate by 25 basis points, bringing the repo rate to 6.75% and the prime lending rate to 10.25%."

"The rate cut is expected to ease pressure on consumers with loans, support small businesses, and encourage investment and economic activity. The government continues to prioritise measures that help reduce the cost of living, create jobs, and improve economic stability. "

The government added that it will continue to work with social partners to improve the economic environment and ensure that the benefits of growth reach those most affected by rising prices.

'The decision aligns with the Government’s ongoing efforts to strengthen growth, support vulnerable communities, and build an economy that works for all".

"Government will continue to work with social partners to improve the economic environment and ensure that the benefits of growth reach the poor and those most affected by rising prices".

IOL 

mthobisi.nozulela@iol.co.za

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