FOLLOWING the drop of the repo rate, or Reserve Bank overnight lending rate, to 15,222% on Thursday, a rate cut has become imminent. The repo rate is now close on 400 points lower than the current prime lending rate of commercial banks, at 19%. At present, such a 400 point margin usually triggers a prime rate cut, and commercial banks are now likely to tumble over themselves to cut rates. A rate cut has been unlikely over the past few weeks, with uncertainties such as the election outcome and President Thabo Mbeki’s cabinet selection constraining financial markets. After Mbeki’s selection of a strong cabinet on Thursday, with key portfolios like Finance, and Trade and Industry in experienced and trusted hands, these uncertainties are now gone.