The South Africa Reserve Bank on Thursday kept the rate unchanged at 3.5%.
“This means the prime lending rate remains at 7%,” explains Andiswa Bata, FNB Business Regional Head – Gauteng South West.
“Whilst there has been no change, it is important to consider that we started 2020 with the prime lending rate at 10%.
“Although there has been some volatility, fuel prices are also lower than the beginning of the year.”
Bata said that if implemented successfully, we should also see improved prospects for local businesses following the President’s economic reconstruction and recovery plan.
“The impact of COVID-19 does create a great deal of uncertainty for local businesses,” she added.
“As a result, it’s important for businesses to continue to manage costs, try to maintain a cash buffer and seek to offer the best possible products and services to customers, to protect revenue and defend market share.”