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.


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South Africa Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
6.25 6.50 23.99 5.00 1998 - 2020 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2019-07-18 01:00 PM 6.5% 6.75% 6.5% 6.50%
2019-09-19 01:00 PM 6.5% 6.5% 6.5% 6.50%
2019-11-21 01:00 PM 6.5% 6.5% 6.5% 6.50%
2020-01-16 01:00 PM 6.25% 6.5% 6.5% 6.5%
2020-03-19 01:00 PM 6.25% 6.0%


News Stream
2019-11-21
South Africa Leaves Interest Rate Unchanged at 6.5%
The South African Reserve Bank held its benchmark repo rate unchanged at 6.50 percent during its November meeting, as widely expected. The decision was not unanimous. Policymakers noted that monthly inflation has been lower than the mid-point of the target range and that inflation expectations have continued to moderate gradually. Meantime, economic activity in Q3 is expected to be weak as suggested by mining and manufacturing short-term indicators. Looking ahead, the SARB disclosed that projections point to one repo cut of 25 basis points in Q3 2020, but this direction is dependent on new developments and changing data and risks.

2019-09-19
South Africa Holds Key Interest Rate Steady at 6.5%
The South African Reserve Bank decided unanimously to leave its benchmark repo rate unchanged at 6.50 percent on September 19th 2019, as widely expected, after trimming it by 25 bps in the prior meeting, despite concerns about economic growth. Policymakers noted that inflation expectations continued to moderate and said that they will continue to focus on anchoring inflation expectations near the mid-point of the inflation target in the interest of balanced and sustainable growth. The bank added that future policy decisions will continue to be highly data-dependent, sensitive to the assessment of the balance of risks to the outlook, and will seek to look-through temporary price shocks.

2019-07-18
South Africa Trims Repo Rate to 6.5%
The South African Reserve Bank cut its benchmark repo rate by 25 bps to 6.5 percent on July 18th 2019, as widely expected. It was the first rate cut since March last year, amid a persistently uncertain environment. Policymakers noted that inflation expectations continued to moderate and said that they will continue to focus on anchoring it near the mid-point of the inflation target range. The Committee added that future policy decisions are highly data dependent, sensitive to the assessment of the balance of risks to the outlook. Also, policymakers said that the GDP is expected to rebound in the second quarter of the year and lowered its outlook for 2019 to 0.6 percent (from 1 percent in a previous projection); while for 2020 and 2021 were unchanged at 1.8 percent and 2.0 percent, respectively.

2019-05-23
South Africa Holds Key Rate Steady at 6.75%
The South African Reserve Bank left its benchmark repo rate unchanged at 6.75% on May 23rd 2019, as widely expected. Policymakers said that the stance of monetary policy is broadly accommodative over the forecast period as the medium-term inflation outlook has improved. The bank added that GDP is expected to contract in Q1 2019, based on recent short term indicators and negative growth in mining and manufacturing owing to Eskom blackouts. The GDP growth projections were cut to 1.0% in 2019 from prior 1.3%; the forecast for 2020 and 2021 was unchanged at 1.8% and 2.0%, respectively.

2019-03-28
South Africa Leaves Interest Rate Unchanged at 6.75%
The South African Reserve Bank decided unanimously to hold its benchmark repo rate steady at 6.75% on March 28th 2019, as widely expected. Policymakers said the current stance of monetary policy remains accommodative and monetary policy actions will continue to focus on anchoring inflation near to the mid-point of the target range in the interest of sustainable growth. The Committee also noted the moderation in inflation expectations. The GDP growth projections were cut to 1.3% in 2019 (previously 1.7 percent); to 1.8 percent in 2020 (from 2%) and to 2% in 2021 (from 2.2%).


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.

South Africa Money Last Previous Highest Lowest Unit
Interest Rate 6.25 6.50 23.99 5.00 percent [+]
Money Supply M0 291880.00 279846.00 291880.00 415.00 ZAR Million [+]
Money Supply M1 1832143.00 1824169.00 1832143.00 1482.00 ZAR Million [+]
Interbank Rate 6.56 6.56 16.96 5.06 percent [+]
Money Supply M2 3026017.00 2992285.00 3026017.00 2887.00 ZAR Million [+]
Money Supply M3 3772010.00 3761179.00 3772010.00 4796.00 ZAR Million [+]
Foreign Exchange Reserves 55058.00 54893.00 55058.00 5316.00 USD Million [+]
Banks Balance Sheet 5884906.00 5924124.00 5924124.00 114781.00 ZAR Million [+]
Loans to Private Sector 3864414.00 3874352.00 3874352.00 4051.00 ZAR Million [+]
Deposit Interest Rate 6.88 6.76 21.60 5.08 percent [+]
Lending Rate 10.00 10.00 25.50 5.00 percent [+]
Central Bank Balance Sheet 855671.00 879240.00 911544.00 543.00 ZAR Million [+]