Discussion | MPC announces last interest rates decision of the year

JOHANNESBURG - Reserve Bank govenor Lesetja Kganyago has announced a 25 basis point rate cut. 

The repo rate now falls from 8% to 7.75%. This means the prime lending rate will also drop from 11.5% to 11.25%.

READ: Reserve Bank cuts interest rates by 25 basis points

Kganyago said the decision to only cut the interest rate by a modest quarter percentage point was unanimous.

Kganyago reiterated that MPC remains cautious in the short term.

He cautioned that global interest rates could shift higher and geopolitical uncertainty,
could have an effect on the rand.

The Black Business Council's Kganki Matabane discussed this with eNCA.