JOHANNESBURG - In a move widely anticipated by economists, the Reserve Bank has announced a 25 basis point cut to the repo rate.
At its last meeting, the Monetary Policy Committee held the rate steady at 7.5 per cent — but Thursday’s decision lowers it to 7.25 per cent, offering some relief to consumers.
The rate cut comes just weeks after South Africans narrowly avoided a VAT increase and could ease pressure on household budgets already strained by the rising cost of living..
Mpho Molopyane, the chief economist at Alexforbes discussed what the rate cut means with eNCA.
The MPC decided to reduce the policy rate by 25 basis points, with effect from 30 May. pic.twitter.com/3JCjEjrQnz
— SA Reserve Bank (@SAReserveBank) May 29, 2025