Prime Lending Rate

Last week the South African Reserve Bank (SARB) announced a reducing of another 25 basis points on the interest rates in the country and you have probably received communication from the different credit providers about an adjustment in their prime lending rate. The prime lending rate is the interest rate that is charged mostly by commercial banks to their credit customers. Currently, for South Africa it is standing at 7% per annum and this rate forms the basis for most interest rates – from bonds, personal loans to business loans. The lower the prime lending rate, the cheaper it is to borrow and invest the borrowed funds meaning that when the central banks cut the prime lending rates they will be looking at boosting the economy and obviously vice versa. As always, the effect on investments works well with a supporting fiscal policy. (Fundamental Analysis that may affect the performance of the markets.)

”Thank you Afika, appreciate the information. Just on a side note, your class this week was nothing shorter than awesome!! A lot of insight and information was shared in such a simple and understandable way! Keep up the good work!“

Nico Janse van Rensburg
CFD Class