Trade Union Federation COSATU has called on the banking sector to lower their interest rates in line with the lowering of the repo rate.
COSATU has welcomed the decision by the Reserve Bank to reduce the repo rate by 50 basis points to 3,75%.
The repo rate is the rate at which
the Reserve Bank lends money to commercial banks.
The latest decision means the prime lending rate by banks is now 7,25%.
Indebted consumers will now pay less on their debt installment.
As the country continues to battle the coronavirus pandemic, the nationwide lockdown has impacted business and employees with some not being able to work and some businesses not being able to pay workers.
Cosatu's parliamentary coordinator Matthew Parks says often the interest charged by banks and other financial institutions is excessive."https://scontent-jnb1-1.xx.fbcdn.net/v/t1.0-9/99432044_3195396477179381_4254085177346621440_n.jpg?_nc_cat=107&_nc_sid=8024bb&_nc_ohc=Khvgsn6nx40AX_RcjFC&_nc_ht=scontent-jnb1-1.xx&oh=9bfb014603c002f9d11fd653391637b5&oe=5EEBDBF3"
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