First National Bank (FNB), a wholly-owned subsidiary of South Africa’s third biggest bank, FirstRand, on Friday said it will maintain its prime lending rate at 9.25 percent following the decision earlier today by the SARB Monetary Policy Committee to leave rates unchanged through the festive season.

“After a tough year we have recently seen some relief for consumers with lower fuel prices and now we have a further two months of rate stability. As we all look towards the coming holidays, stable rates give consumers a secure platform from which they can plan their finances in 2015,” FNB CEO Jacques Celliers, said.

“We still see that consumers are very wary regarding large purchases that require bank funding. This pattern is understandable in the light of recent disappointing economic growth figures. However, with some good fortune, our prospects should improve in the coming year and consumers should factor-in rate hikes during 2015 as confidence returns,” Celliers added.

Sizwe Nxedlana, Chief Economist at FNB, said the recent decline in both oil and agricultural commodity prices has resulted in a more benign inflation outlook, which in turn, allowed the SARB to keep the rate on hold on Friday.

“Notwithstanding the recent reprieve for consumers, we do anticipate that interest rates will continue on a gradual upward trajectory next year. This is likely to be driven by higher interest rates overseas and an inflation pick up in the second half of 2015,” Nxedlana added.