The South African Reserve Bank voted unanimously to trim its benchmark repo rate by 25bps to 6.25 percent during its January meeting, while markets had expected it to be kept steady, citing the country's persistent economic vulnerability. It was the first rate cut since July, bringing borrowing costs to the lowest level since November 2015. Policymakers noted that monthly inflation has been lower than the mid-point target and that inflation expectations continued to moderate gradually. Meantime, economic activity in Q4 is expected to have picked up, after a contraction in Q3. GDP growth projections were revised lower to 0.4% in 2019 (vs prior 0.5%), 1.2% in 2020 (vs prior 1.4%), and 1.6% in 2021 (vs prior 1.7%). Also, inflation forecasts were cut to 4.1% in 2019 (vs prior 4.2%); 4.7% in 2020 (vs prior 5.1%) and 4.6% in 2021 (vs prior 4.7%). Looking forward, the SARB see two interest rate cuts of 25bps each in Q1 and Q4 2020.
Interest Rate in South Africa averaged 12.42 percent from 1998 until 2020, reaching an all time high of 23.99 percent in June of 1998 and a record low of 5 percent in July of 2012. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. source: South African Reserve Bank
Interest Rate in South Africa is expected to be 6.00 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 5.75 in 12 months time. In the long-term, the South Africa Interest Rate is projected to trend around 6.00 percent in 2020, according to our econometric models.