Absa: Interest rates hiked by 50 basis points

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) raised the key monetary policy interest rate – the repurchase, or repo rate – by 50 basis points from 6,25% to 6,75% per annum. In view of this hike in the repo rate, Absa announced that its prime lending and variable mortgage interest rates will rise from 9,75% to 10,25% per annum, effective from 29 January 2016. Lending rates have risen by a cumulative 175 basis points since the start of 2014 and the outlook is for interest rates to rise further during the course of 2016 in an attempt to curb inflationary pressures.

Read more here: Interest rates (50bps hike 28Jan16)