ANC statement on the interest rate cut by the Reserve Bank

22 November 2024

The African National Congress (ANC) welcomes the decision of the Monetary Policy of the Reserve Bank to cut the interest rate by 25 basis points, resulting in the repo rate standing at 7.75% and the prime lending rate at 11.25%.

The cut will result in smaller instalments on loans and lesser interests over the life of the loan. This is indeed a positive development for consumers and small businesses who will benefit from this cut. This important and progressive decision augurs well for the country, resulting in lower inflation, positive sentiment for the country and its credit rating. In the long term, this will lead to increased economic growth and the stabilisation of the headline inflation in the near future.

The interest rate cut bolsters efforts to reduce the cost of high living in line with Priority 3 of our Election Manifesto and the commitment we made to the people towards a better life for all. This significant decision coincides with the fifth consecutive easing of the Consumer Price Inflation (CPI) from 3.8% to 2.8% which is complementary to efforts to reduce the high cost of living. The ANC remains optimistic of future inflation easing and more cuts despite the complexities of the global economy which inevitably affect South Africa's economic outlook and performance.

We reaffirm our commitment towards reducing the high costs of living, protecting the county from high interest rates and inflationary harm.

Issued by Mahlengi Bhengu-Motsiri, National Spokesperson, ANC, 22 November 2024