As was expected, the South African Reserve Bank’s (SARB’s) monetary policy committee (MPC) left interest rates unchanged on Thursday.
It was the seventh consecutive meeting that the interest rates had remained on hold, keeping them at 15-year highs.
The rates remain the highest they have been since 2009 and have been in effect since May 2023.
As a result of the latest decision, the repo rate will remain at 8.25% and the prime lending rate at 11.75%.
Four members of the MPC voted to keep rates unchanged, while two voted for a cut of 25 basis points.
“The committee assessed that an unchanged stance remained appropriate, given the inflation risks,” Lesetja Kganyago, Governor of the South African Reserve Bank, said.
“Some members, however, were of the view that the inflation outlook had improved enough to reduce the degree of restrictiveness.”
The MPC meets every second month.
Hopes of a rate cut have been pushed back to the SARB’s next meeting on Thursday, 19 September.
SARB MPC MEETING DATES FOR 2024
| Month | Date |
| January | 25 January |
| March | 27 March |
| May | 30 May |
| July | 18 July |
| September | 19 September |
| November | 21 November |
Reminder of monthly bond repayments
The South African website’s helpful table below shows the current monthly bond repayments on various bond values assuming no deposit and that repayments are at prime (11.75%):
| Bond value (20 years) | Monthly cost |
| R750 000 | R8 128 |
| R800 000 | R8 670 |
| R850 000 | R9 212 |
| R900 000 | R9 753 |
| R950 000 | R10 295 |
| R1 000 000 | R10 837 |
| R1 500 000 | R16 256 |
| R2 000 000 | R21 674 |
| R2 500 000 | R27 093 |
| R3 000 000 | R32 511 |
| R3 500 000 | R37 930 |
| R4 000 000 | R43 348 |
| R4 500 000 | R48 767 |
| R5 000 000 | R54 185 |