The South African Reserve Bank (SARB) has opted to keep interest rates unchanged, with the repo rate remaining at 7% and the prime lending rate at 10.50%.
The decision was made during the latest Monetary Policy Committee (MPC) meeting on Thursday.
According to SARB Governor Lesetja Kganyago, the decision was not unanimous – with four members voting to hold, while two preferred a 25 basis point cut, highlighting ongoing debate over the best course of action in a challenging economic climate.
“Global markets are currently resilient, but risks remain high,” Kganyago said.
“The domestic outlook has improved, but inflationary pressures persist – particularly from administered prices like electricity.”
Growth Outlook Improves
The Reserve Bank raised its 2025 GDP growth forecast from 0.9% to 1.2%, buoyed by stronger-than-expected economic growth in the second quarter, which came in at 0.8%.
This, Kganyago noted, shows that the economy has underlying strength, though structural reforms are still essential for long-term recovery.
South Africa’s headline inflation cooled to 3.3% in August, down from 3.5% in July, helped by softer food and fuel prices.
However, the SARB still expects inflation to average around 4%, particularly due to steep electricity price increases approved by energy regulator NERSA.
“The dysfunction in administered prices is a serious threat to economic stability,” Kganyago warned.
“What we need are reforms to improve efficiency – not higher inflation.”
Interest Rate Outlook
While Thursday’s announcement aligns with most economist expectations, the split vote suggests there is growing appetite for monetary easing if inflation continues to moderate.
The next interest rate decision – and final one of the year – will take place on Thursday, 20 November, where updated inflation and energy cost data will guide the committee’s approach.
For now, borrowers and businesses can expect stability, while investors will watch closely for signs of a potential rate cut before year-end.
Who are the SARB’s MPC?
The South African Reserve Bank’s monetary policy committee meets every second month to announce changes – if any – to the country’s repo and prime lending rates.
The meetings in 2025 are scheduled to take place in January, March, May, July, September and November – and always on a Thursday at 15:00.
Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB – and the deciding vote if necessary.
| Month | Date | Outcome |
| January | 30 January | 25 basis point cut |
| March | 20 March | No change |
| May | 29 May | 25 basis point cut |
| July | 31 July | 25 basis point cut |
| September | 18 September | No change |
| November | 20 November | TBA |
Monthly bond repayment table
The table below shows the current monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime.
| Bond | Current |
| R750 000 | R7 488 |
| R800 000 | R7 987 |
| R850 000 | R8 486 |
| R900 000 | R8 985 |
| R950 000 | R9 485 |
| R1 000 000 | R9 984 |
| R1 500 000 | R14 976 |
| R2 000 000 | R19 968 |
| R2 500 000 | R24 960 |
| R3 000 000 | R29 951 |
| R3 500 000 | R34 943 |
| R4 000 000 | R39 935 |
| R4 500 000 | R44 927 |
| R5 000 000 | R49 919 |
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