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.

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South Africa Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
3.50 3.50 23.99 3.50 1998 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-07-23 01:00 PM 3.5% 3.75% 3.50% 3.50%
2020-09-17 01:00 PM 3.5% 3.5% 3.5% 3.5%
2020-11-19 01:00 PM 3.5% 3.5% 3.5% 3.5%
2021-01-21 01:00 PM 3.5% 3.5% 3.5% 3.5%
2021-03-25 01:00 PM 3.5% 3.5%
2021-05-20 01:00 PM
2021-07-22 01:00 PM
2021-09-23 01:00 PM
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
South Africa Leaves Key Interest Rate Steady at 3.5%
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.
2021-01-21
South Africa Holds Key Interest Rate Steady at 3.5%
The South African Reserve Bank left its benchmark repo rate unchanged at a record low of 3.5% during its November meeting, as widely expected. The decision was not unanimous and follows 300 bps rate cuts so far this year to support an economy already in recession before the pandemic shock. Policymakers said that the risks to the growth outlook are assessed to be balanced while overall risks to the inflation outlook appear to be to the downside in the near term and balanced over the medium term. The Reserve Bank also said that further easing was not likely in the near term but hinted two rate increases in the Q3 and Q4 of 2021. The Committee now expects that the economy will shrink by 8% in 2020, compared to September's estimate of a 8.2% contraction, before rebounding by 3.5% (previously 3.9%) in 2021 and 2.4% in 2022 (previously 2.6%). Estimates also point to 3.2% inflation in 2020 (vs prior 3.3%), 3.9% in 2021 (vs prior 4%) and 4.4% in 2022 (unrevised).
2020-11-19
South Africa Holds Key Interest Rate Steady at 3.5%
The South African Reserve Bank held its benchmark repo rate unchanged at a record low of 3.5% during its September meeting, as widely expected. The decision was not unanimous and follows 300 bps rate cuts so far this year 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 monetary policy alone cannot improve the potential growth rate of the economy or reduce fiscal risks. The Reserve Bank also said that further easing was not likely in 2020 but hinted two rate increases in the Q3 and Q4 of 2021. The Committee now expects that the domestic economy will shrink by 8.2% in 2020, compared to July's estimate of a 7.3% contraction, before rebounding by 3.9% (previously 3.7%) in 2021 and 2.6% in 2022 (previously 2.8%). Estimates also point to 3.3% inflation in 2020 (vs prior 3.4%), 4% in 2021 (vs prior 4.3%) and 4.4% in 2022 (vs prior 4.3%).
2020-09-17
South Africa Trims Key Interest Rate to 3.5%
The South Africa Reserve Bank slashed its key repo rate by 25bps to a new all-time low of 3.50% on July 23rd 2020, as widely expected. The move follows a 50bps rate on May 21st, amid the coronavirus crisis. Policymakers said that investment, exports and imports will likely fall sharply and job losses are projected to rise even if lockdown restrictions are relaxed further in the coming months. The Committee expects that the domestic economy shrinks by 7.3% 2020, compared to a previous estimate of a 7% contraction to then grow by 3.7% in 2021 and 2.8% in 2022. Policymakers noted that the economic contraction and slow recovery will keep inflation well below the midpoint of the target range this year. The Committee also relaxed regulatory requirements on banks aiming to free up more capital for lending by financial institutions to households and firms. Since the beginning of 2020, the central bank has cut its key repo rate by a total of 300 bps.
2020-07-23

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.