Borrowers may be relieved but people with money in the bank will earn less as the banks move to drop deposit rates in line with lower lending rates.
On 32-day notice deposits, for example, Absa cut interest rates from 12 percent to 11 percent, from yesterday and NBS cut its rate from a range of between 11,25 percent and 12 percent to a range of between 11 percent and 11,75 percent.
Standard has not yet cut its 11,75 percent rate but a cut is under consideration. Nedcor is about to revise its deposit rates of 11,25 percent on Nedplan, 11,5 percent on Permanent QuickDeposit and 11,5 percent on the Peoples Bank Notice Deposit; and FNB will announce new rates from Monday.