South African Reserve Bank (Sarb) Governor Lesetja Kganyago on Thursday announced that the repo rate will be reduced to 6.25%.
The repo rate is the rate at which the central bank lends money to commercial banks.
The decision follows this week’s Monetary Policy Committee meeting.
In July last year, the bank reduced the repo rate by 25 basis points to 6.5% and it was kept unchanged in September and November.
The prime lending rate, the figure charged by banks to customers, has been cut to 9.75%.