The Reserve Bank of South Africa has cut the repo rate with 0,25% to 6,5% starting 19 July 2019. The prime lending rate will drop to 10%. This will bring a little relief to everybody making debt repayments and even be positive for our shares. The negative side is that this drop will put pressure on the rand and, of course, highlight the problem with economic growth in South Africa.
For those of you who choose to use the saving on debt repayments for your investment drive, there is a new initiative from Vestact called “The 10c Saving Challenge” under the hashtag #SaveWithBright which involves setting aside an amount equal to the day of the year, times 10c starting with just 10c on the first day of the year. The next day you save 20c, the day after 30c. After one year, the most you will have set aside on a single day is the R36,50 on the final day. But, by the end of the year you will have the tidy sum of R6 679,50 in savings! And this excludes any interest you might earn.