National Automobile Dealers' Association Welcomes South African Reserve Bank’s Decision to Cut Interest Rates
NADA Welcomes SARB’s Decision to Cut Interest Rates
The South African Reserve Bank (SARB) has announced a 25-basis-point cut to the repo rate, reducing it to 7% following the latest Monetary Policy Committee (MPC) meeting. As a result, the prime lending rate for commercial banks drops to 10.50%.
“The National Automobile Dealers’ Association (NADA) welcomes this decision, which offers meaningful relief to consumers and businesses alike in a persistently challenging economic climate. Lower interest rates enhance vehicle affordability and will help energise demand in both the new and pre-owned vehicle markets, particularly in cost-sensitive segments,”
says Brandon Cohen, Chairperson of NADA.
The rate cut comes amid heightened global uncertainty, with South Africa facing the prospect of export tariffs as high as 30% following an impending trade deadline set by the United States. While broader economic challenges remain, SARB’s decision sends a positive signal and may help strengthen domestic resilience.
Cohen notes that although this may be the final window for monetary easing in the near term, with inflation having remained within SARB’s 3% to 6% target range for nine consecutive months, the cut is a step in the right direction.
“The automotive retail sector remains resilient, and dealers continue to support customers through tailored finance solutions and value-driven offerings,”
he adds.
NADA is a proud association of the Retail Motor Industry Organisation (RMI)
