The South African Reserve Bank (SARB) has opted to keep its repo rate steady at 7.0%, which means the prime lending rate remains at 10.5%. This decision provides a measure of relief for homeowners with variable-rate mortgages, as their monthly repayments will not increase. At the current prime rate, those holding a R2 million home loan over a 20-year period are required to pay R19,968 each month. The unchanged rates have spared borrowers an additional R335 in monthly repayments that would have been incurred with a 25-basis-point rate hike.
For a complete 20-year loan term, borrowers are expected to repay around R4.79 million, a sum that includes both the principal loan amount and the associated interest charges. The Monetary Policy Committee’s decision to maintain the current rates was not unanimous; it was reached with four members voting in favor of keeping rates unchanged, while two advocated for a 25-basis-point increase due to concerns over inflation.
Homeowners and market watchers were keenly observing the SARB’s decision, as any change in interest rates could significantly impact financial planning and household budgets. By maintaining the status quo, the SARB has provided a sense of stability for borrowers who might have otherwise faced increased financial obligations.
The SARB’s next interest rate decision is anticipated on 23 September 2026, when the committee will again assess the economic landscape and inflationary pressures to determine the appropriate course of action regarding interest rates.