www.bloomberg.com
South African Reserve Bank Governor Lesetja Kganyago has proposed ending the use of “prime” as the country’s primary lending reference rate. Priced at 3.5% above the repo rate, prime is used to price trillions of rand in loans. Kganyago argues the current system reduces transparency, calling instead for banks to link variable loans directly to the official repo rate. This shift aims to improve clarity for consumers, ensuring they can better understand how monetary policy decisions directly impact their interest repayments.
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