The South African Reserve Bank increased its main lending rate by 50 bps to 8.25% during its May meeting, pushing borrowing costs to their highest level since May 2009 and surprising the market, which had anticipated a smaller rate hike of 25 bps. Policymakers cited concerns regarding the significant depreciation of the rand and the mounting pressures of inflation as key drivers behind the rate adjustment. The SARB also revised its inflation forecasts, with inflation for 2023 now projected to average 6.2%, up from the previous estimate of 6.0%. For 2024, inflation is expected to average 5.1%, up from the earlier projection of 4.9%. Additionally, the SARB adjusted its 2023 GDP forecast, with the economic growth now expected at 0.3%, a slight increase from the previous estimate of 0.2%. This latest rate hike by the SARB marked the 10th consecutive increase in interest rates, totaling 475 basis points since the policy tightening began in November 2021. source: South African Reserve Bank
Interest Rate in South Africa averaged 11.92 percent from 1998 until 2023, 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 June of 2023.
Interest Rate in South Africa is expected to be 8.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Africa Interest Rate is projected to trend around 7.00 percent in 2024 and 6.00 percent in 2025, according to our econometric models.