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Home › SA Prime Rate › SARB Rate Changes 2024, 2025 &...

SARB Rate Changes 2024, 2025 & 2026 — Full MPC Timeline

Every Monetary Policy Committee decision from 2024 through April 2026 — repo rate, prime rate, change amount, and impact on bond repayments.

Current Rates — April 2026

Prime Rate

10.25%

Repo Rate

7.75%

All SARB MPC Decisions — 2024 to 2026

MPC DateDecisionRepoPrimeR1M Bond Impact
30 Jan 2025▼ Cut 25bps7.75%10.25%−R159/mo
21 Nov 2024▼ Cut 25bps8.00%10.50%−R159/mo
19 Sep 2024▼ Cut 25bps8.25%10.75%−R159/mo
25 Jul 2024Hold8.50%11.00%No change
30 May 2024Hold8.50%11.00%No change
27 Mar 2024Hold8.50%11.00%No change
25 Jan 2024Hold8.50%11.00%No change
Next MPC: May 2026 — Forecast: Hold at 10.25%TBC

What the SARB Rate Changes Mean for Your Bond

Since the SARB began cutting in September 2024, three cuts of 25 basis points each have reduced the prime rate by 0.75% in total — from 11.00% to 10.25%. On a R1 million home loan over 20 years, this saves approximately R477 per month compared to the peak rate period.

The next MPC meeting is scheduled for May 2026. Most economists polled by Reuters and Bloomberg expect the SARB to hold rates at the May meeting. A further 25 basis point cut in the second half of 2026 is possible if CPI continues to fall toward the 4.5% midpoint target and global economic conditions remain stable.

Use our home loan calculator to see how further rate cuts would affect your specific bond repayment.

Disclaimer: Rate data sourced from SARB MPC statements. Forecasts are market consensus estimates and not guaranteed. Always consult a financial adviser before making decisions based on rate expectations.

Related Tools & Guides

Home Loan Calculator Loan Affordability Prime Rate Full Guide Current Prime Rate Rate History

Understanding the SARB Repo Rate and Prime Rate

The South African Reserve Bank (SARB) sets the repo rate — the rate at which it lends money to commercial banks overnight. Commercial banks add a fixed 3.5 percentage point margin to set the prime lending rate, which is the basis for most variable-rate credit in South Africa including home loans, vehicle finance, and overdrafts.

The SARB Monetary Policy Committee (MPC) meets six times per year. Decisions are based on inflation (target: 3–6% CPI), GDP growth, the rand exchange rate, global commodity prices, and movements from the US Federal Reserve. The SARB began cutting rates in September 2024 as inflation moved toward the 4.5% midpoint of the target band.

Prior to the 2024 cutting cycle, the repo rate peaked at 8.25% in May 2023 — the highest since 2009 — following a 475 basis point hiking cycle that began in November 2021. As of 2026, the repo rate stands at 7.5% and prime at 11.0%.

Every 25 basis point (0.25%) change in the repo rate moves your monthly bond repayment by approximately R150–R170 per R1,000,000 borrowed. On a R2,000,000 home loan, a 0.50% rate cut saves approximately R600–R680/month.

Frequently Asked Questions

As of early 2026, the SARB repo rate is 7.5% and the prime lending rate is 11.0%, following a series of cuts from the 2023 peak of 8.25%. Always verify the current rate at resbank.co.za for the latest official figure.
South African home loans are almost universally variable-rate, priced at prime plus or minus a margin. When the SARB cuts the repo rate by 0.25%, your prime rate and home loan rate fall by the same amount. On a R1,500,000 bond, a 0.25% cut reduces your monthly repayment by approximately R225–R250. Conversely, a rate hike increases repayments by the same amount.
The SARB MPC meets six times per year — approximately every two months. Each meeting results in a rate decision: cut, hold, or hike. The meeting schedule is published annually on the SARB website. Emergency out-of-cycle meetings are extremely rare.
The repo rate is the SARB policy rate. The prime rate is always repo + 3.5 percentage points — set by commercial banks. So repo at 7.5% means prime is 11.0%. Consumer loans are typically priced at prime plus a risk margin based on your credit profile.
Market consensus as of early 2026 suggests the SARB has room for further gradual cuts, with rates potentially reaching 7.0–7.25% by year-end, assuming inflation stays within target. The rand exchange rate and US Federal Reserve decisions are key wild cards. The SARB is data-dependent and does not pre-commit to future moves.
When the US Fed raises rates, capital flows toward USD assets, weakening emerging market currencies including the rand. A weaker rand is inflationary in South Africa (imported goods, especially fuel and electronics, cost more in rand), which forces the SARB to keep rates elevated. When the Fed eases, this pressure reduces, giving the SARB more room to cut.
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