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.

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South Africa Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
3.75 4.25 23.99 3.75 1998 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-01-16 01:00 PM 6.25% 6.5% 6.5% 6.5%
2020-03-19 01:00 PM 5.25% 6.25% 5.75% 5.75%
2020-04-14 09:00 AM 4.25% 5.25%
2020-05-21 01:00 PM 3.75% 4.25% 3.75% 3.75%
2020-07-23 01:00 PM 3.75% 3.75%
2020-09-17 01:00 PM 3.50%
2020-11-19 01:00 PM 3.25%


News Stream
South Africa Cuts Repo Rate to Fresh Record Low of 3.75%
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.
2020-05-21
South Africa Trims Key Interest Rate to 4.25%
The South Africa Reserve Bank slashed its key repo rate by another 100 bps to 4.25% at an emergency meeting on April 14th 2020, after cutting it by 100 bps in the March meeting, to support the economy weakened by a 35-day nationwide lockdown aiming at curbing the spread of Covid-19. The Reserve Bank also said that further easing was likely ahead. Policymakers said that recovery after the coronavirus peaks is uncertain and forecast a 6.1% contraction in 2020 (previously -0.2%), 2.2% growth in 2021 (previously 1%) and 2.7% expansion in 2022 (previously 1.6%). Current prediction also point to 3.6% inflation in 2020 (vs prior 3.8%), 4.5% in 2021 (vs prior 4.6%) and 4.4% in 2022 (unrevised).
2020-04-14
South Africa Slashes Key Interest Rate to 5.25%
The South African Reserve Bank unanimously decided to axe its key repo rate by 100 bps to 5.25% during its March 2020 meeting, surprising markets who expected a smaller 50 bps cut, amid growing uncertainty over the impact of the coronavirus crisis on the already fragile economy. It was the 2nd straight rate cut so far this year, bringing borrowing costs to the lowest since December of 2013. Policymakers said that low inflation has created space for monetary policy to respond to deteriorating economic conditions. The economy is now expected to contract 0.2% in 2020 (vs prior 1.2% growth), before expanding 1% in 2021 (vs prior 1.6%) and 1.6% in 2022 (vs prior 1.9%). Current forecasts point to inflation at 3.8% in 2020 (vs prior 4.7%), 4.6% in 2021 (unrevised) and 4.4% in 2022 (vs prior 4.5%). The bank reiterated that monetary policy cannot on its own improve the potential growth or reduce fiscal risks and urged the government to implement prudent macroeconomic policies.
2020-03-19
South Africa Unexpectedly Cuts Repo Rate to 6.25%
The South African Reserve Bank voted unanimously to trim its benchmark repo rate by 25bps to 6.25 percent during its January meeting, while markets had expected it to be kept steady, citing the country's persistent economic vulnerability. It was the first rate cut since July, bringing borrowing costs to the lowest level since November 2015. Policymakers noted that monthly inflation has been lower than the mid-point target and that inflation expectations continued to moderate gradually. Meantime, economic activity in Q4 is expected to have picked up, after a contraction in Q3. GDP growth projections were revised lower to 0.4% in 2019 (vs prior 0.5%), 1.2% in 2020 (vs prior 1.4%), and 1.6% in 2021 (vs prior 1.7%). Also, inflation forecasts were cut to 4.1% in 2019 (vs prior 4.2%); 4.7% in 2020 (vs prior 5.1%) and 4.6% in 2021 (vs prior 4.7%). Looking forward, the SARB see two interest rate cuts of 25bps each in Q1 and Q4 2020.
2020-01-16

South Africa Interest Rate
In South Africa, the interest rates decisions are taken by the South African Reserve Bank’s Monetary Policy Committee (MPC). The official interest rate is the repo rate. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis.