The South African Reserve Bank left its benchmark repo rate unchanged at a record low of 3.5% during its January 2021 meeting, as widely expected. The decision was not unanimous and follows 300 bps rate cuts in 2020 to support an economy already in recession before the pandemic shock. Policymakers said that both the risks to the growth outlook and the inflation outlook are assessed to be balanced, adding that the slow economic recovery will help keep inflation below the midpoint of the target range for this year and next. The Reserve Bank also signaled that tightening may start sooner than previously indicated in November. The Committee now expects that the economy will shrink by 7.1% in 2020, compared to November's estimate of a 8% plunge, before rebounding by 3.6% in 2021 (previously 3.5%), 2.4% in 2022 (unrevised) and 2.5% in 2023. Forecasts also point to 3.3% inflation in 2020 (vs prior 3.2%), 4% in 2021 (vs prior 3.9%), 4.5% in 2022 (vs prior 4.4%) and 4.6% in 2023. source: South African Reserve Bank
Interest Rate in South Africa averaged 12.25 percent from 1998 until 2021, 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 February of 2021.
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 4.00 in 12 months time. In the long-term, the South Africa Interest Rate is projected to trend around 4.00 percent in 2022, according to our econometric models.