In short: The South African Reserve Bank’s policy rate (still widely called the repo rate) is 7.25%. The Monetary Policy Committee (MPC) raised it by 25 basis points on 23 September 2026, effective from 25 September 2026. The prime lending rate moved to 10.75% on the same day. The next MPC decision is due on 19 November 2026. Your own loan or savings rate is set by your bank, so confirm it in your banking app or statement. Not financial advice.
Source: SARB Statement of the Monetary Policy Committee, September 2026.
Current rates at a glance
| Rate | Level | Since |
|---|---|---|
| SARB policy (repo) rate | 7.25% | 25 September 2026 |
| Prime lending rate | 10.75% | 25 September 2026 |
| Headline inflation (CPI) | 4.4% | August 2026 figure |
| SARB inflation target | 3% (plus or minus 1 percentage point) | Current target |
What the repo / policy rate is
It is the rate the Reserve Bank sets to steer borrowing costs across the economy. SARB now calls it the SARB policy rate, but most people and most banks still say repo rate. When the MPC changes it, banks usually move their prime lending rate by the same amount on the day the change takes effect.
Prime is the reference rate for most variable home loans, vehicle finance, overdrafts and credit cards. In practice prime sits 3.5 percentage points above the repo rate.
Why the rate went up in September 2026
- Fuel prices: SARB said petrol prices were rising again after easing between June and August, and expects headline inflation to go above 5% late in 2026 and early in 2027.
- Services inflation: price increases in many services are running well above the 3% target.
- Inflation expectations: longer-run expectations are still around 4%, above the 3% target.
- Vote: the decision was unanimous.
SARB also noted that food inflation is at its lowest since 2010 and that the rand has held up well.
Recent changes
| Effective date | Repo rate | Prime rate | Change |
|---|---|---|---|
| 25 September 2026 | 7.25% | 10.75% | Up 0.25 |
| 29 May 2026 | 7.00% | 10.50% | Up 0.25 |
| 21 November 2025 | 6.75% | 10.25% | Down 0.25 |
| 1 August 2025 | 7.00% | 10.50% | Down 0.25 |
| 30 May 2025 | 7.25% | 10.75% | Down 0.25 |
| 31 January 2025 | 7.50% | 11.00% | Down 0.25 |
The July 2026 meeting left the rate unchanged at 7%. Dates are the days the new rate took effect, from SARB’s historical rate data.
How it affects you
- Home loans and other credit linked to prime: a hike raises your instalment from the date your bank applies it. As a rough guide, a R1 million, 20-year bond at prime goes from about R9,980 a month at 10.50% to about R10,150 at 10.75%. Your bank’s letter or app shows your actual rate and instalment.
- Fixed-rate products: do not change until the fixed period ends.
- Savings and fixed deposits: banks set these separately. They often rise after a hike, but not always by the full amount.
- Legal maximum interest rates: the National Credit Act caps many credit types at the repo rate plus a fixed margin (for example, repo plus 21% for unsecured loans, which is 28.25% at a 7.25% repo rate). The cap that applies is the one in force when you signed.
Next MPC dates
SARB lists the next interest-rate announcements as 19 November 2026, then 28 January, 18 March, 27 May, 22 July, 29 September and 25 November 2027. Decisions are made meeting by meeting, so this page does not forecast a hike or a cut.
Where to check
For the official rate, use the live SARB current market rates page and the latest MPC statement. Your bank’s app or branch confirms the rate on your own loan or savings account.
Last checked: 9 October 2026 against the SARB September 2026 MPC statement and SARB current market rates. Confirm on SARB. Not financial advice.