South Africa Interest Rate 1998-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in South Africa was last recorded at 5.75 percent. Interest Rate in South Africa averaged 13.17 Percent from 1998 until 2014, 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

Actual Previous Highest Lowest Dates Unit Frequency
5.75 5.50 23.99 5.00 1998 - 2014 Percent Monthly
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 Wednesday, August 20, 2014.

South Africa Raises Rate to 5.75%

At its July 17th meeting, South African Reserve Bank decided to raise the repo rate by 25 bps to 5.75 percent as inflation has breached the upper end of target range.

Excerpts from the statement by Gill Marcus, Governor:

Since the previous meeting of the Monetary Policy Committee, the economic growth outlook has deteriorated against the backdrop of protracted strike action in the mining and manufacturing sectors. The economy contracted in the first quarter of 2014, and the growth outlook for the rest of the year remains subdued amid low business confidence. Compounding the MPC’s policy dilemma, inflation has breached the upper end of the target range, driven primarily by the exchange rate depreciation and rising food prices, while a possible wage-price spiral resulting from recent wage settlements and wage demands considerably in excess of inflation and productivity growth have added to the upside risk to the inflation outlook.  

The MPC is also increasingly concerned about the inflation outlook, and the further upside risks to the forecast. Although the exchange rate remains a key factor in this regard, the possibility of a wage-price spiral should wage settlements well in excess of inflation and productivity growth become an economy-wide norm has increased. Although the inflation trajectory has not deteriorated markedly since the previous meeting, upside risks have increased, and it is expected to remain uncomfortably close to the upper end of the target range when it does eventually return to within the target. The upside risk factors make this trajectory highly vulnerable to any significant changes in inflation pressures. 

The MPC is, however, cognisant of the fact that the inflation pressures do not reflect excess demand conditions in the economy. Household consumption expenditure remains weak, and credit extension to households is contracting in real terms. However, we do have to be mindful of second-round effects of supply side shocks. 

We would like to reiterate that monetary policy should not be seen as the growth engine of the economy. The sources of the below par growth performance are largely outside the realms of monetary policy. In the short term, an improvement in the interaction and relationships between management and labour is essential to foster a climate of trust and confidence, and get South Africa back to work. Given that the key headwinds preventing a return to trend growth are structural, there is an urgent need to implement necessary structural reforms, as envisaged in the National Development Plan, in order to achieve higher and more inclusive growth.

Reserve Bank of South Africa | Joana Taborda |
7/17/2014 5:17:28 PM

Recent Releases

South Africa Leaves Monetary Policy Unchanged
At its May 22nd, 2014 meeting, South African Reserve Bank left the benchmark interest rate unchanged at 5.5 percent for the second straight meeting, as inflation is expected to remain outside the target for some time, while demand conditions in the economy remain subdued. Published on 2014-05-22

South Africa Leaves Rate on Hold
At its March 27th, 2014 meeting, South African Reserve Bank left the benchmark interest rate unchanged at 5.5 percent, as growth outlook remains subdued while inflation risks are on the upside. The central bank hinted possible rate hikes in the medium-run. Published on 2014-03-27

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-01-29 01:30 PM South Africa
Interest Rate Decision
5.5% 5.0% 5.0% 5%
2014-03-27 01:00 PM South Africa
Interest Rate Decision
5.5% 5.5% 5.5% 5.5%
2014-05-22 02:00 PM South Africa
Interest Rate Decision
5.5% 5.5% 5.5% 5.5%
2014-07-17 02:30 PM South Africa
Interest Rate Decision
5.75% 5.5% 5.5% 5.5%
2014-09-18 02:00 PM South Africa
Interest Rate Decision
5.75% 5.5%

Money Last Previous Highest Lowest Unit
Interest Rate 5.75 5.50 23.99 5.00 Percent [+]
Interbank Rate 5.64 5.37 23.50 1.58 Percent [+]
Money Supply M0 186355.00 182522.00 193902.00 415.00 ZAR Million [+]
Money Supply M1 1202095.00 1188026.00 1217569.00 1482.00 ZAR Million [+]
Money Supply M2 2119113.00 2147986.00 2147986.00 2887.00 ZAR Million [+]
Money Supply M3 2662818.00 2657132.00 2662818.00 4796.00 ZAR Million [+]
Foreign Exchange Reserves 498900.00 486470.00 556657.00 153.00 ZAR THO Million [+]
Loans to Private Sector 2739000.00 2710665.00 2739000.00 4051.00 ZAR Million [+]

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