The Repo Rate commonly known as the Fed's Rate

In an economy full of economist that believe in the market. These economist believe that the market will always sort itself. They are to blame for all the the economic mishap that we see in all the  economies of the world. They have even went further to force most of the reserve banks in believing that for you to achieve economic growth, you must pursue inflation targeting. An increase or decrease of of the Repo rate is quite ineffective in addressing what the SARB aims to address. With that said we must not shy away from stating that inflation in South Africa has been stable for some time now, with it recording a record low under the pandemic.

The Repo rate is the rate at which banks borrow from the creator of currency. Not the same same the bank will charge you, if you want to borrow to buy land, car or start a business. The Repo rate allows the reserve bank to hand over power to the banks to create money out of nothing. Know how strict and anti black the South African banks are, it is for this reason there is effective multiplier effect coming down from the drop or increase of the Repo rate to the ordinary citizen. 

Other than stipulating the repo rate I believe it will be more effective to tweak the amount of reserves a bank should carry so that money can be passed on to real actors within an economy. The mechanism through which the Repo rate is expected to help say achieve economic growth is theory that has doomed many developing countries. I mean the IS curve expects investments that are very much low in developing country to help achieve economic growth. Even, when investments are abundant within that developing country they remain a leach to that country. This economic theory sold by market economist  seems to not hold when data is provided to test it. I believe programs like TARP, NHI and the funding of education and SMME's can help directly impact the real economy without any need for any bank to facilitate.

In conclusion, I suspect the monetary policy committee will further drop the repo rate until a vaccine for the corona virus is found. It will be in you benefit to pay up you debt by partially increasing your installment. With level one knocking, a change of dropping rates might occur, speak to your banks and use this time wisely.