FNB retains lending rates
by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – FIRST National Bank (FNB) said it would maintain its prime lending rate at 9,25 percent following the decision by the central bank’s Monetary Policy Committee (MPC) to retain its rates.
The South African Reserve Bank committee on Thursday announced the rates unchanged until the next MPC meeting in May.
The decline in the value of the Rand and a likely reversal of the downward trend in inflation rates may nudge the SA Reserve Bank towards a rate hike later in the year, FNB Chief Executive Officer, Jacques Celliers, said.
“Unfortunately, consumers may come under increasing pressure during April and they should take great care when taking on new loans,” he said.
Sizwe Nxedlana, Chief Economist at FNB, said the SARB opted to leave interest rates on hold on Thursday due to a weak economic outlook and the recent inflation slowdown.
Nevertheless, a combination of higher maize prices, fuel tax increases and a weak Rand/US Dollar exchange rate imply that the inflation relief has largely run its course.
“As a result, the SARB is expected to return to the path of gradual interest rate tightening in the short term,” Nxedlana said.
– CAJ News
Short URL: http://cajnewsafrica.com/?p=4992