The South African Reserve Bank raised its benchmark repo rate by 25 bps to 3.75% at its November 2021 meeting, against market expectations of 3.5%. This is the first rate hike in three years due to increased inflation risks and despite a fragile recovery. The Committee believes a gradual rise in the repo rate will be sufficient to keep inflation expectations well anchored and moderate the future path of interest rates. In October, headline inflation stood at a four-month high of 5%, above the SARB’s mid-point level of 4.5% for the 6th consecutive month. Headline CPI forecast has been revised slightly higher to 4.5% in 2021 (from 4.4% in September), 4.3% in 2022 (vs 4.2%) and 4.6% in 2023 (vs 4.5%). Meanwhile, the GDP growth projections were lowered to 5.2% in 2021 (from 5.3%) but kept unchanged at 1.7% in 2022 and 1.8% in 2023. The central bank's model indicates an increase of 25 basis points in the Q4 of 2021 and further increases in each quarter of 2022, 2023 and 2024. source: South African Reserve Bank
Interest Rate in South Africa averaged 12.12 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 January of 2022.
Interest Rate in South Africa is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Africa Interest Rate is projected to trend around 6.00 percent in 2023, according to our econometric models.