Yes! We have another interest rate cut. The Reserve Bank’s Monetary Policy Committee (MPC) concluded their meeting today which started yesterday and have decided to cut interest rates by 100 basis points. This simply means that interest rates will come down by 1% meaning the prime lending rate is now 13%. Now you will be paying less on your mortgage or car loan.
This comes as good news to most of us as we have a loan of one form or the other. They say that South Africans in total have an accumulated debt of R1 trillion! That is a lot of money. But hopefully now with the 1% drop in interest rates we can cut the amount of debt we have. There is also the possibility that interest rates will come down by another 1% next month.
Reserve Bank governor, Tito Mboweni however warned us that now that the MPC is meeting every month, it does not mean they will be cutting interest rates every month. So we have to enjoy the cuts whilst they last. With the way the wold economy is going, we should be a bit happy with these interest rate cuts as things could easily be worse.
