The South Africa Reserve Bank slashed its key repo rate by 50bps to 3.75% during its May meeting. The move follows a 100bps rate cut in April’s emergency meeting, bringing borrowing costs to its lowest level on record, amid the coronavirus crisis. Policymakers said that monetary policy can ease financial conditions and improve the resilience of households and firms to the economic implications of the coronavirus outbreak. The Committee also relaxed regulatory requirements on banks and said that it has taken important steps to ensure adequate liquidity in domestic markets. Policymakers expect a 7% GDP contraction in 2020, even if lockdown restrictions ease in the next months. The Committee noted that the economic contraction and slow recovery will keep inflation below the midpoint of the target range. Policymakers said that they will continue to closely monitor new data and risks and will seek to look through temporary price shocks and focus on second round effects.
Interest Rate in South Africa averaged 12.38 percent from 1998 until 2020, reaching an all time high of 23.99 percent in June of 1998 and a record low of 4.25 percent in April of 2020. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2020. source: South African Reserve Bank
Interest Rate in South Africa is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in South Africa to stand at 3.00 in 12 months time. In the long-term, the South Africa Interest Rate is projected to trend around 4.00 percent in 2021 and 5.00 percent in 2022, according to our econometric models.