South African Reserve Bank raises repo rate

South African Reserve Bank raises repo rate

As widely anticipated by most economists the governor of the South African Reserve Bank (Sarb) Lesetja Kganyago voted in favour of and announced a 25 basis point increase in the repo rate to 4% on Thursday the 27th of January 2022, bringing the prime lending rate to 7,5%.

It is expected that the property market will absorb this increase whilst keeping the momentum it currently has. Despite this increase  in the prime lending rate the level of the interest rate compared to pre-covid times remain low and therefore it will and should continue to entice buyers to invest in property and make use of bank loans when doing so.