The South African Reserve Bank left its benchmark repo rate unchanged at a record low of 3.5% during its November meeting, as widely expected. The decision was not unanimous and follows 300 bps rate cuts so far this year to support an economy already in recession before the pandemic shock. Policymakers said that the risks to the growth outlook are assessed to be balanced while overall risks to the inflation outlook appear to be to the downside in the near term and balanced over the medium term. The Reserve Bank also said that further easing was not likely in the near term but hinted two rate increases in the Q3 and Q4 of 2021. The Committee now expects that the economy will shrink by 8% in 2020, compared to September's estimate of a 8.2% contraction, before rebounding by 3.5% (previously 3.9%) in 2021 and 2.4% in 2022 (previously 2.6%). Estimates also point to 3.2% inflation in 2020 (vs prior 3.3%), 3.9% in 2021 (vs prior 4%) and 4.4% in 2022 (unrevised). source: South African Reserve Bank
Interest Rate in South Africa averaged 12.28 percent from 1998 until 2020, reaching an all time high of 23.99 percent in June of 1998 and a record low of 3.50 percent in July 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 November of 2020.
Interest Rate in South Africa is expected to be 3.50 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 3.75 in 12 months time. In the long-term, the South Africa Interest Rate is projected to trend around 4.00 percent in 2021, according to our econometric models.