The repo rate (also called the official bank rate) is the government’s key interest rate for enacting monetary policy. It is the rate at which banks can borrow money from the reserve bank. So, when an announcement is made regarding a change in interest rates, then this is the rate which the government is changing. This shift, either up or down, then filters through to the rate that commercial banks charge. In South Africa, changes are recommended by the Monetary Policy Committee and enacted by the Governor of the Reserve Bank.
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