South Africa Interest Rate 1998-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in South Africa was last recorded at 6 percent. Interest Rate in South Africa averaged 13 percent from 1998 until 2015, reaching an all time high of 23.99 percent in June of 1998 and a record low of 5 percent in July of 2012. Interest Rate in South Africa is reported by the South African Reserve Bank.

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South Africa Interest Rate
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Actual Previous Highest Lowest Dates Unit Frequency
6.00 5.75 23.99 5.00 1998 - 2015 percent Daily
In South Africa, the interest rates decisions are taken by the South African Reserve Bank’s Monetary Policy Committee (MPC). The official interest rate is the repo rate. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - South Africa Interest Rate - was last refreshed on Friday, July 31, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-03-26 01:00 PM 5.75% 5.75% 5.75% 5.75%
2015-05-21 02:00 PM 5.75% 5.75% 5.75% 5.75%
2015-07-23 02:00 PM 6.0% 5.75% 6.0% 5.75%
2015-09-23 02:00 PM 6.0%
2015-11-19 01:25 PM 6.0%


South Africa Raises Key Rate to 6%


South African Reserve Bank hiked its benchmark repo rate for the first time in 12 months by 25bps to 6 percent in July. Policymakers said upside risks to inflation remain elevated while the rand is weak and growth is subdued.

The prime rate was also increased by 25bps to 9.5 percent.

The central bank hiked inflation forecasts for 2015 to 5 percent from 4.9 percent. Forecasts for the first two quarters of 2016 have also been revised up by 0.1 percent to 6.9 percent and 6.1 percent respectively, with a return to target by the third quarter.

The economy expanded 1.3 percent on quarter in the first three months of 2015 and the central bank expects second quarter figure to be similar. However, forecasts for full year growth were lowered to 2 percent in 2015 and 2.1 percent in 2016.  

Excerpts from the statement issued by Lesetja Kganyago:

Inflation is expected to breach the upper end of the target range for two quarters, and the medium term trajectory remains uncomfortably close to the upper end of the target range. The upside risks make this trajectory vulnerable to any significant changes in inflation pressures.

Although the risks of higher electricity tariffs did not materialise as yet, other upside risks persist. The rand remains vulnerable to global market reaction to US monetary policy normalisation, particularly in the context of South Africa’s twin deficits. The pressures on the exchange rate have been exacerbated by the recent significant decline in commodity prices, which are likely to impede the favourable current account adjustment. Some of the rand adjustment has already occurred since the previous meeting, but further reaction to US monetary policy tightening could cause inflation to diverge even further from target, and set in motion an exchange rate inflation spiral. Further upside risks are expected to come from food prices, which have yet to react to significant increases in spot prices of agricultural commodities.

The MPC has indicated for some time that it is in a hiking cycle in response to rising inflation risks, and a normalisation of the policy rate over time. The MPC is cognizant of the fact that domestic inflation is not driven by demand factors, and the outlook for household consumption expenditure remains subdued. Economic growth remains subdued, constrained by electricity supply disruptions and low business and consumer confidence and the risks to the outlook remain on the downside. However, as emphasised previously, we have to be mindful of the risk of second-round effects on inflation, and the committee is concerned that failure to act against these heightened pressures and risks will cause inflation expectations to become entrenched at higher levels.

The MPC has therefore decided to continue on its path of gradual policy normalisation. Accordingly, the repurchase rate will increase by 25 basis points to 6,0 per cent per annum with effect from Friday 24 July 2015. Four members favoured a 25 basis point increase, while two members favoured an unchanged stance.

Reserve Bank South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
7/23/2015 2:59:54 PM


Recent Releases

South Africa Leaves Rates on Hold; Lowers Growth Forecasts
South African Reserve Bank left its key repo rate unchanged at 5.75 percent in May as widely expected, signaling a rate rise may occur soon due to inflationary pressures. Policymakers also lowered growth forecasts and hiked inflation ones.
Published on 2015-05-21

South Africa Leaves Repo Rate at 5.75%
South Africa's Reserve Bank left interest rates unchanged at 5.75 percent as expected on March 26th, yet it signaled that raise may be coming soon forced by increase in inflationary pressures.
Published on 2015-03-26

South Africa Keeps Key Rate at 5.75%, Lowers Growth Forecast
South African Reserve Bank left its key repo rate on hold at 5.75 percent in January as inflationary pressures eased. The MPC also said that the bar for rate cuts remains high and would require a sustained decline in the inflation rate and inflation expectations and lowered the growth forecast for 2015 from 2.5 to 2.2 percent.
Published on 2015-01-29

South Africa Holds Key Rate Steady
South African Reserve Bank left its key repo rate on hold at 5.75 percent in November as inflationary pressures eased and growth outlook remains weak. The central bank also revised down inflation and growth forecasts.
Published on 2014-11-20


South Africa Money Last Previous Highest Lowest Unit
Interest Rate 6.00 5.75 23.99 5.00 percent [+]
Interbank Rate 5.68 5.71 23.50 1.58 percent [+]
Money Supply M0 203837.00 200095.00 209636.00 415.00 ZAR Million [+]
Money Supply M1 1315412.00 1308850.00 1315412.00 1482.00 ZAR Million [+]
Money Supply M2 2305254.00 2312319.00 2312319.00 2887.00 ZAR Million [+]
Money Supply M3 2887071.00 2872594.00 2887071.00 4796.00 ZAR Million [+]
Foreign Exchange Reserves 565670.00 556140.00 568524.00 153.00 ZAR THO Million [+]
Loans to Private Sector 2966414.00 2936116.00 2966414.00 4051.00 ZAR Million [+]
Banks Balance Sheet 4384535.00 4348747.00 4384535.00 114781.00 ZAR Million [+]
Central Bank Balance Sheet 625155.00 620777.00 626341.00 543.00 ZAR Million [+]
Lending Rate 9.50 9.25 25.50 5.00 percent [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Jul/15 2.00 17.50 2.00 percent [+]
Brazil 14.25 Jul/15 13.75 45.00 7.25 percent [+]
Canada 0.50 Jul/15 0.75 16.00 0.25 percent [+]
China 4.85 Jun/15 5.10 10.98 4.85 percent [+]
Euro Area 0.05 Jul/15 0.05 4.75 0.05 percent [+]
India 7.25 Jun/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Jul/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Jul/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jul/15 3.00 9.25 3.00 percent [+]
Russia 11.00 Jul/15 11.50 17.00 5.00 percent [+]
South Korea 1.50 Jul/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Jul/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Jul/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jul/15 0.25 20.00 0.25 percent [+]