Economists expect the South African Reserve Bank (SARB) to keep interest rates on hold in the country when its Monetary Policy Committee (MPC)meets for the second time in 2025 on Thursday, 20 March at 15:00.
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However, there are a handful of more bullish economists who anticipate another 25 basis point cut.
As a reminder, there have been three consecutive 25 basis point cuts since September 2024.
The MPC will have had just over a week to digest the Budget Speech news and decide what to do with interest rates in the country.
Meanwhile, Statistics South Africa (StatsSA) released its latest annual consumer inflation data on Wednesday.
The data showed no change in February from 3.2% the previous month.
What did the MPC decide in January 2025?
There was some good news for South Africa’s homeowners – and those looking to enter the property market for the first time – back in January when the MPC decided on a 25 basis point cut which no doubt came as welcome news to all those South Africans in debt.
The repo rate thus currently stands at 7.50% while the prime lending rate is 11%.
Who are the SARB?
The South African Reserve Bank’s (SARB’s) monetary policy committee (MPC) meets every second month to announce changes – if any – to the country’s repo and prime lending rates.
The meetings take place in January, March, May, July, September and November – and always on a Thursdayat 15:00.
Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB.
| Month | Date | Outcome |
| January | 30 January | 25 basis point cut |
| March | 20 March | ? |
| May | 29 May | |
| July | 31 July | |
| September | 18 September | |
| November | 20 November |
Monthly bond repayment table
The South African website’s table below shows the current monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime.
Should the interest rates remain on hold as is expected, the below table will remain accurate for the next two months at very least.
| Bond | Current (11%) |
| R750 000 | R7 741 |
| R800 000 | R8 258 |
| R850 000 | R8 774 |
| R900 000 | R9 290 |
| R950 000 | R9 806 |
| R1 000 000 | R10 322 |
| R1 500 000 | R15 483 |
| R2 000 000 | R20 644 |
| R2 500 000 | R25 805 |
| R3 000 000 | R30 966 |
| R3 500 000 | R36 127 |
| R4 000 000 | R41 288 |
| R4 500 000 | R46 448 |
| R5 000 000 | R51 609 |
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