South Africans say leaving repo rate unchanged is no relief

 

South Africans have expressed mixed reactions to the latest repo rate announcement by the country’s Reserve Bank.

The Reserve Bank’s Monetary Commitee has decided to leave the repo rate unchanged at a 14-year high of 8.25%,

The MPC decided to keep the repo rate unchanged at 8.25%. Four members preferred an unchanged stance, and two preferred a reduction of 25 basis points. pic.twitter.com/JddmlKxg0t

— SA Reserve Bank (@SAReserveBank) July 18, 2024

Reserve Bank governor, Lesetja Kganyago, made the announcement on Thursday.

The prime lending rate, which is the rate banks charge consumers, also remains at 11.75%

According to Kganyago, four members of the MPC decided to keep the rate unchanged whilst two wanted a 25-basis points’ reduction.

Most social media users say this is no relief for them.

Repo rate must be reduced instead, we can not be subjected to celebrate unchanged 🚮

— 水astido (@PostiveImpact89) July 18, 2024

Repo rate is a scam by the banks

— THE HITTA (@lordmodiba) July 18, 2024

Kganyago & his gang says we are not ready for a lesser repo rate, he says we must continue to choke on our debt. #MPC

— Moshabi Senwamadi (@Senwamadi) July 18, 2024

The practice of automatically increasing the lending rate for EXISTING loans with the repo is fundamentally wrong⚠️

New price for old money 🤬
Super-profits ➡️banks 🤬🤬
Bankrupt families🤬🤬🤬

Retroactive price increase🚫
Racketeering=crime🚫
End Rent-seeking Now! 🛑#RepoRate https://t.co/16KFe9oVKR

— warren Manning 🇿🇦🇮🇪🇵🇸🇨🇺🇻🇳🇺🇦🇾🇪 (@IzweWarren) July 18, 2024

According to Duduzile food prices will remain the same because it determined by repo rate. pic.twitter.com/NaJlCjBJTy

— Boowa7™ (@Boowa7) July 18, 2024

Still no relief for consumers: SARB’s MPC leaves repo rate unchanged at 8.25%.

— 𝐂𝐨𝐧-𝐓𝐞𝐬𝐭𝐞𝐫 (@ConTesterX) July 18, 2024

Wrong move again. There is no reason why the repo rate must remain this high. None whatsoever.

— Akani M (@Akanirelo) July 18, 2024

The MPC couldn’t even reduce the repo rate for Madiba 😔😔 https://t.co/ctqIYFH8hH

— Nikov (@Kgovesh_Nikov) July 18, 2024

The @SAReserveBank leaves the repo rate unchanged at 8.25%. It is still high when can we see the cut? Please Governor its tough.

— Sophie Mokoena (@Sophie_Mokoena) July 18, 2024

Repo rate unchanged 🙁

— Thabang (@ThabangBitsi) July 18, 2024

4/2 split. Governor Kganyago probably was part of the 4 that voted to keep repo rate at 8.25% https://t.co/6QZ67Qi6Ba

— Doug Stamper 🇵🇸 (@LungeloN_Zulu) July 18, 2024

Economist, Dawie Roodt, says he is not surprised by the decision.

He believes that two members of the MPC voting for an interest rate cut is a good sign for the future.