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Interest rate unchanged at 3.5%

The South African Reserve Bank (SARB) today announced its decision to hold the interest rate at its all-time low of 3.5%, citing Covid-19 uncertainty and the looming third wave. Economists predicted that SARB governor Lesetja Kganyago will maintain the 3.5% rate for the whole of 2021. Since the start of the pandemic last year, the SARB has slashed the interest rate by 275 basis points. Bloomberg Economics said this is enough for now. 
To put the 275 basis points cut into perspective, note this: in January 2020, the interest rate was at 6.25% (which was considered low under normal circumstances). Fast forward a year later, we’re at 3.5%. This means that borrowing costs will decrease, giving us, the consumers, more in our pockets. 💰