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Prime lending rate remains unchanged

Cash strapped consumers in South Africa breathed a sigh of relief as the South African Reserve Bank decided not to change the repo rate.

The repo rate remains unchanged at 5 % and the prime lending rate at 8.5 %.

Analysts had earlier predicted that the interest rates are likely to stay unchanged this year as the SARB looks to curb rising inflation amid subdued economic growth. Weak domestic demand is expected to limit the country’s economic expansion to 2.6 % in 2013.

SABC economic journalist, Morafe Tabane said: “The Reserve Bank is expected to keep its repo rate unchanged at 5.00% for the rest of this year, before rising to 5.50% by the end of 2014”.

However, consumers are still under pressure and that their spending will continue to lose momentum. The unrest in the mining sector will also have a big impact during 2013.

Source: SABC

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