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The MPC’s decision means the monthly instalment on a new R2-million home loan at the prime rate will be almost R350 cheaper. Since the MPC started hiking rates in 2021, repayments on a R2-million bond surged by R7 000 a month.
As expected, the SA Reserve Bank’s monetary policy committee (MPC) lowered interest rates by 25 basis points – despite a jumbo cut of 50 basis points in the US overnight.
Following the cut, SA’s repo rate will now be 8%, and the prime rate 11.50%.