Economy

National Budget: Tough decisions may be needed to deal with South Africa’s fiscal crisis

Steady interest rates outcome still positive for agriculture in tough times

As widely expected, the South African Reserve Bank (SARB) kept the repo rate steady at a record low of 3.5% in its first meeting of 2021.

MPC Commentary

The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) once again left the repo rate unchanged at 3.5% this month. Rates have been kept on hold since the July 2020 cut, prior to which they had been cut aggressively to ease financial conditions in response to the COVID-19 crisis.

2021 represents a new start despite the second wave

Following the South African Reserve Bank’s (SARB) decision to keep interest rates unchanged, FNB will maintain its prime lending rate at 7% and will review its position after the next SARB Monetary Policy Committee meeting in March 2021.