How does the SARB influence the price of capital?

The South African Reserve Bank (SARB) can influence the price of capital by adjusting its key interest rate, known as the repo rate. By raising or lowering the repo rate, the SARB can affect borrowing costs for businesses and individuals, which in turn can impact the overall price of capital in the economy. Additionally, the SARB's monetary policy decisions can influence market expectations and investor confidence, further influencing the cost of capital.