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.

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South Africa Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2023-01-26 01:00 PM 7.25% 7% 7.5% 7.5%
2023-03-30 01:00 PM 7.75% 7.25% 7.5% 7.50%
2023-05-25 01:00 PM 8.25% 7.75% 8% 8.0%
2023-07-20 01:00 PM 8.25% 8.25%
2023-09-21 01:00 PM
2023-11-23 01:00 PM


Related Last Previous Unit Reference
Interest Rate 8.25 7.75 percent May 2023
Interbank Rate 8.49 8.49 percent Jun 2023
Money Supply M1 2517353.00 2497477.00 ZAR Million Apr 2023
Money Supply M0 389709.00 391788.00 ZAR Million Apr 2023
Money Supply M2 4008914.00 3995219.00 ZAR Million Apr 2023
Money Supply M3 4909344.00 4884076.00 ZAR Million Apr 2023
Banks Balance Sheet 7424489.00 7311893.00 ZAR Million Apr 2023
Foreign Exchange Reserves 61720.00 61851.00 USD Million Apr 2023
Loans to Private Sector 4498282.00 4493613.00 ZAR Million Apr 2023
Lending Rate 11.80 11.25 percent May 2023
Central Bank Balance Sheet 1189545.00 1155453.00 ZAR Million Apr 2023

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.
Actual Previous Highest Lowest Dates Unit Frequency
8.25 7.75 23.99 3.50 1998 - 2023 percent Daily

News Stream
South African Reserve Bank Hikes Rates By 50 Bps
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.
2023-05-25
South Africa Hikes Key Interest Rate to 7.75%
The South African Reserve Bank raised its benchmark repo rate by 50 bps to 7.75% at its March 2023 meeting, while markets had expected a smaller 25 bps increase. It was the 9th consecutive rate hike since policy normalization started in November 2021, bringing borrowing cotst to the highest since May 2009. Policymakers revised significantly upward headline inflation for 2023, now expected at 6% from 5.4% previously due to higher prices of core goods and food in the near term. Despite this, food and fuel inflation are expected to ease, resulting in a headline forecast of 4.9% for 2024 and 4.5% in 2025
2023-03-30
South Africa Lifts Key Interest Rate to Only 7.25%
The South African Reserve Bank raised its benchmark repo rate by 25 bps to 7.25% at its January 2023 meeting, while markets had expected a 50 bps increase. This marks the 8th consecutive rate hike since policy normalization started in November 2021, to anchor inflation expectations more firmly around the mid-point of the target band of 3-6% and achieve the inflation target in 2024. The move was driven by the Bank’s assessment that risks to the inflationary outlook remain skewed to the upside. The headline CPI forecast was revised up to 6.9% in 2022 (vs prior estimate of 6.7%), kept unchanged at 5.4% in 2023 and raised to 4.8% in 2024 (vs 4.5%). Meanwhile, core inflation estimates were kept at 4.3% in 2022, but cut to 5.2% in 2023 (vs previous 5.5%) and to 4.7% in 2024 (vs previous 4.8%). Regarding economic activity, the bank now sees growth of only 0.3% in 2023, well below an earlier estimate of 1.1%, mainly due to extensive power cuts and other logistical constraints.
2023-01-26