Nica Richards
Deputy online news editor
3 minute read
1 Feb 2021
5:04 am

Relief as interest rates to remain low

Nica Richards

At 7%, the prime overdraft rate is at its lowest level in 50 years.

Image for illustration: iStock

Indebted South Africans would have been relieved by the recent decision of the Reserve Bank’s Monetary Policy Committee (MPC) to keep its official bank rate (the repo rate) unchanged. At 7%, the prime overdraft rate is also unchanged and remains at its lowest level in 50 years. South Africa is still marginally out of kilter with most of its major trading partners and some emerging market peers, with a positive real bank rate of 0.3%. The world is currently experiencing record-low interest rates, with central bank rates in several of the largest economies either close to zero or negative. A...