We are seeing a pause in rate hikes, says FNB
First National Bank (FNB) will leave its prime lending rate unchanged following the decision taken earlier today by the SARB Monetary Policy Committee (MPC) to keep rates on hold until the final SARB MPC meeting of 2015.
“Following the decision by the US Federal Reserve to keep rates unchanged last week, today’s announcement was widely expected. The Fed’s decision to delay the start of its interest rate hiking cycle has bought time for the SARB to delay its own hiking cycle,” says FNB CEO Jacques Celliers.
“In an environment of low economic growth and high volatility in currency and equity markets which are creating unwanted uncertainty, the SARB’s cautious approach is prudent. Naturally, we are seeing increased consumer caution in the second half of 2015,” adds Celliers.
Says Sizwe Nxedlana, Chief Economist at FNB; “The recent performance of the SA economy has deteriorated further. South Africa’s short-term growth outlook is also not rosy with domestic demand likely to face strong headwinds. The lower oil price since the last Monetary Policy Committee meeting has also improved the outlook for headline inflation while core inflation has been moderating. The major risk to the inflation outlook is the weakness of the exchange rate and its potential second round effects on firm pricing behavior.”
Consumer Information
FNB offers assistance in the form of a Debt Remedy facility from FNB Home Loans and a Special Repayment Arrangement offered by FNB Card.
FNB’s Savings & Investment Product House conducts weekly rates review meetings at which rates earned on non-prime linked investments are reviewed independently of the SARB’s MPC announcements. Revised rates are communicated via rates boards in branches and on FNB’s web site, www.fnb.co.za.
Useful personal banking contacts:
www.fnb.co.za offers impartial financial advice, click on ‘calculators’ for budgeting and planning guides.
FNB Telephone Banking and Pricing Line: 0860 11 22 44
FNB Debt Review Centre: 0860 36 20 02
