First National Bank (FNB) will maintain its prime lending rate at existing levels following the decision taken earlier today by the South African Reserve Bank Monetary Policy Committee (SARB MPC) to leave rates unchanged until the next MPC meeting in November. The decision applies to all prime-linked accounts.
“In making their decision today, the Reserve Bank is maintaining stability and to balance this requirement with wider economic considerations of sustainable growth. Keeping rates steady provides stability at a time when global and domestic conditions remain uncertain. With this we urge businesses and consumers to look beyond some of these uncertainties around tariffs, for business in particular, to diversify into new markets as trade routes change” says FNB CEO Harry Kellan.
“While we have seen a notable improvement in consumer confidence, business confidence has not followed the same trend. Both remain in negative territory, suggesting that the economy still faces a low-growth environment.
Interest rates are only one factor influencing confidence, and the SARB’s decision to keep rates unchanged places greater emphasis on other priorities such as boosting household incomes and creating employment opportunities,” says FNB Chief Economist Mamello Matikinca-Ngwenya.
Numerous positive developments indicate that both consumer and business optimism can improve in future. “These include recent stability and strengthening of the Rand/USD exchange rate, inflation remaining at modest levels and a sharp recovery in gold, platinum, and other resource prices,” she adds.
A further indication of improving sentiment can be seen in house prices. “We noted in our FNB Residential Property Barometer last month that house prices are now rising slightly higher than the inflation rate. This trend should lead to a much-needed acceleration in building activity.
“We have the view that the tariffs recently imposed by the US on South African exports can be resolved and should not be viewed as a permanent or structural shift in our economy. At the same
time, a widely anticipated US rate cut this month will create further opportunities for our own Reserve Bank to lower rates in future,” continues Matikinca-Ngwenya
Kellan adds that consumers, whilst not saving from additional rate cuts, they can reduce costs and improve the efficiency of their banking services by using the wide range of services available on the FNB Banking App and its Nav tools.” he concluded.
Consumer Information
FNB offers assistance in the form of a Debt Remedy facility from FNB Home Loans, and a Special Repayment Arrangement offered by FNB Card. FNB’s Investment Product House conducts weekly rates review meetings at which rates earned on non-prime linked investments are reviewed independently of the SARB’s MPC announcements. Revised rates are communicated via rates boards in branches and on FNB’s web site, www.fnb.co.za.
SUPPLIED.
