There is no reason why bank lending rates should remain constant over time, the Democratic Alliance (DA) said in a statement on Wednesday.

"There is no reason why the 3,5% difference between the repo rate and the interest rate that banks charge consumers should remain constant over time, or across the entire banking sector,"
Dion George, the shadow finance minister said.

He added that new gross domestic product growth figures would be released next week.

They would probably show that consumers were now "taking even more pain from job losses and business closures".

George said this made Reserve Bank Governor Tito Mboweni's meeting with the banking sector on Thursday - to discuss the difference between the Reserve Bank's repo rate and the interest rate charged by banks - particularly important.

"The DA hopes that an agreement that helps consumers will be reached."

Given the financial pressures on consumers, George said the DA called on Mboweni and the banks to consider how the spread could be adjusted to help alleviate the extreme hardship felt by home owners and other borrowers.