South African Reserve Bank’s monetary policy committee (MPC) has increased the repo rate by 25 basis points to 4%, which brings the prime lending rate of banks to 7.5%. This means that you will pay 0.025% more on your debt. Simply you’ll be paying R7,50 for every 1 Rand you borrow.
You will be paying 2,5 cent more for every 1 Rand. The problem is that you’ll be paying R125 extra if you owe R500 000 on your car or home loan. It could be R1 500 per year on a simple calculation.
Economics and Finance SA 