Repo Rate and Prime Lending Rate South Africa 2026: Current Rates and Next Decision
Current Interest Rates
| Rate | Current level | Since |
|---|---|---|
| Repo rate | 7.25% | 25 September 2026 |
| Prime lending rate | 10.75% | 25 September 2026 |
| Change in September 2026 | Up 0.25 percentage points | |
| Next SARB decision | 19 November 2026 |
What Are the Repo Rate and Prime Rate?
- Repo rate: The rate at which the Reserve Bank lends money to commercial banks. It is set by the SARB’s Monetary Policy Committee (MPC).
- Prime lending rate: The base rate banks use for many loans, such as home loans and vehicle finance. In South Africa, prime is normally the repo rate plus 3.5 percentage points.
When the repo rate goes up, prime goes up by the same amount, and so do the repayments on most loans linked to prime.
Why Did the Reserve Bank Raise Rates in September 2026?
The MPC’s decision was unanimous. In its statement, the SARB said:
- inflation was at 4.4%, well above its 3% target,
- conflict in the Middle East and the war between Russia and Ukraine are disrupting supply chains and pushing up prices, especially fuel, and
- it sees “upside risks” to inflation, meaning prices could rise faster than expected.
The SARB expects inflation to stay high into 2027 and to come back to the 3% target towards the end of 2027.
What the Rate Increase Means for Your Home Loan
Here is a simple example for a home loan over 20 years:
| Home loan amount | Monthly repayment at 10.50% | Monthly repayment at 10.75% | Extra each month |
|---|---|---|---|
| R500,000 | About R4,992 | About R5,076 | About R84 |
| R1,000,000 | About R9,984 | About R10,152 | About R168 |
Your bank may charge a rate above or below prime, so your own repayment can be different. Use our bond repayment calculator or loan calculator to work out your numbers.
Who Is Affected?
- Home loan and car finance customers on variable rates pay more each month.
- Credit card and store card users usually pay more interest.
- Savers may earn a little more interest on savings and fixed deposits.
How to Prepare for Higher Repayments
- Check your latest bank statement for your new repayment.
- Pay off expensive short-term debt first.
- Avoid new credit for non-essential purchases, especially over the festive season.
- If you are struggling, speak to your bank early about your options.
Next Interest Rate Decision
The SARB’s next Monetary Policy Committee statement is due on 19 November 2026. We will update this page after the decision.
See also the petrol price for November 2026 and all prices in South Africa.
Repo Rate Questions
What is the repo rate in South Africa now?
7.25%, since 25 September 2026.
What is the prime lending rate in South Africa?
10.75%, since 25 September 2026.
When is the next interest rate decision?
19 November 2026.
Why did the interest rate go up?
The Reserve Bank raised rates because inflation is above its 3% target and it sees risks of prices rising further, mainly because of fuel and global conflict.
How is prime calculated in South Africa?
Prime is normally the repo rate plus 3.5 percentage points.