Pay Off That Debt

Pay Off That Debt

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While the repo rate remains unchanged at 5%, this could change later next year, so small businesses would be well advised to pay off as much debt as possible while rates remain low.

Reserve Bank Governor Gill Marcus said, “The MPC (Monetary Policy Committee) has decided to keep the repurchase rate unchanged at 5.0 percent per annum at this stage.”

The repo rate (which is the scale at which the Reserve Bank lends money to commercial banks) has remained unchanged at 5% since July 2012.

Market expectation was for the central bank to keep the repo rate unchanged.

“We expect the MPC to retain its hawkish tone, emphasising the inflationary risks of a weak exchange rate more than the tepid growth outlook,” said Absa.

“Interest rates are still likely to remain on hold deep into 2014, while international factors threaten rand weakness,” said Nedbank economists.

 

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