ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The repo rate is the rate at which the South African Reserve Bank lends money to commercial banks in South Africa. The rate is set by the Reserves Bank’s Monetary Policy Committee and is adjusted for the purpose of keeping inflation below the target limit.

Detailed explanation-2: -South Africans are set to feel more pain in the coming months as the South African Reserve Bank (SARB) today hiked the repo rate once again by 25 basis points, taking the repurchase rate (repo rate) to 7.25% from 7%. This means that the prime lending rate in the country will increase from 10.5% to 10.75%.

Detailed explanation-3: -South Africa Bank Lending Rate was reported at 10.750 % pa in Mar 2023. This stayed constant from the previous number of 10.750 % pa for Mar 2023. South Africa Bank Lending Rate data is updated daily, averaging 9.500 % pa from Dec 1948 to 06 Mar 2023, with 27091 observations.

Detailed explanation-4: -Who sets interest rates? The Monetary Policy Committee (MPC) meets six times a year to set the repo rate. The MPC consists of up to seven members, including the Governor of the SARB, the three deputy governors and senior officials appointed by the Governor.