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Story summary
- The South African Reserve Bank (SARB) is reviewing its prime lending rate, fixed 350 basis points above the monetary policy rate since 2001.
- The reforms could abolish the reference rate or adjust its spread.
- The reforms may affect existing financial contracts and bank income.
- The central bank plans to introduce Zaronia as a reference rate by December 31, 2026.
- Rising inflation could push the repo rate higher, offsetting potential benefits.
