Major banks have cut their prime lending and home loan interest rates by a quarter of a percentage point to 13.5 percent.
Absa, Standard, First National Bank (FNB), Nedcor and BoE Bank, incorporating NBS, will introduce the new prime lending rate of 13.5 percent on Monday.
BoE Bank and FNB say they will reduce new home loan rates to 13.5 percent on Monday, while existing loans will benefit from the cut in August.
Absa, Nedbank, Permanent Bank and Peoples Bank say they will reduce the rate for both existing and new loans from August 1. Standard Bank says it is still reviewing its home loan rate.
The banks say the latest cut is a response to money market conditions and not criticism by Tito Mboweni, the governor of the Reserve Bank. Mboweni spoke out when the banks only cut rates by three-quarters of a percentage point last month while the repo rate came down a full point.
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