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.

   
  Forecast  

South Africa Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
5.75 5.75 23.99 5.00 1998 - 2014 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 Saturday, November 22, 2014.


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.

Excerpts from the statement by Lesetja Kganyago, Governor:

The Bank’s forecast of headline inflation has improved since the previous meeting of the MPC, mainly due to the impact of declining international oil prices. Having reached a peak of 6.5 percent in the second quarter of this year, inflation is now expected to average 5.9 percent in the final quarter of 2014, and average 6.1 percent for the year, compared with 6.2 percent previously. The downward trend is expected to continue into next year, with inflation forecast to reach a low of 5.1 percent in the second quarter, and to average 5.3 percent for the year, compared with 5.7 percent previously. The forecast for 2016 has been revised down from 5.8 percent to 5.5 per cent, and is expected to measure 5.4 percent in the final quarter of the year.

The Bank’s forecast for GDP growth in 2014 has declined marginally from 1.5 percent to 1.4 percent, and forecasts for 2015 and 2016 have been revised down from 2.8 percent and 3.1 percent to 2.5 percent and 2.9 percent respectively.

The domestic growth outlook remains challenging, and the risks to the forecast are assessed to be moderately on the downside. The MPC does not see significant signs of excess demand pressures that are impacting on the inflation outlook and household consumption expenditure is expected to remain constrained.

At the same time, despite its recent relative stability, the exchange rate remains an upside risk to the inflation outlook, vulnerable to changing perceptions of the timing of global monetary policy adjustments, and the slow pace of contraction in the current account deficit. The extent to which policy normalisation is already priced into the exchange rate is also unclear.

A further upside risk to the inflation forecast comes from a possible increase in wage settlement rates in excess of inflation and productivity growth in the coming year.

In light of this assessment, the MPC sees the overall risk to the headline inflation forecast to be more or less balanced. However, given the elevated level of core inflation, and the fact that headline inflation is expected to increase later in the forecast period as the first round effect of the oil price decline dissipates, the Committee remains vigilant and will continue to monitor developments closely. 

The Committee remains of the view that interest rates will have to normalise over time. However, given the lower trajectory of headline inflation and the continued weak state of the economy, the MPC has unanimously decided to keep the repurchase rate unchanged at 5.75 percent per annum at this stage.

Reserve Bank of South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
11/20/2014 4:01:12 PM


Recent Releases

South Africa Leaves Monetary Policy Unchanged
At its September 2014 meeting, South African Reserve Bank left the repo rate unchanged at 5.75 percent, following last meeting’s 25 bps hike and saying that monetary policy remains accommodative, and will continue to be supportive of the domestic economy. Published on 2014-09-18

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. Published on 2014-07-17


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-07-17 02:30 PM
Interest Rate Decision 
5.75% 5.5% 5.5% 5.5%
2014-09-18 02:00 PM
Interest Rate Decision 
5.75% 5.75% 5.75% 5.75%
2014-11-20 01:25 PM
Interest Rate Decision 
5.75% 5.75% 5.75%
2015-01-29 01:00 PM
Interest Rate Decision 
5.75%
2015-03-26 01:00 PM
Interest Rate Decision 
2015-05-21 02:00 PM
Interest Rate Decision 


South Africa Money Last Previous Highest Lowest Unit
Interest Rate 5.75 5.75 23.99 5.00 percent [+]
Interbank Rate 5.65 5.65 23.50 1.58 percent [+]
Money Supply M0 194586.00 190902.00 194586.00 415.00 ZAR Million [+]
Money Supply M1 1263085.00 1235270.00 1263085.00 1482.00 ZAR Million [+]
Money Supply M2 2218162.00 2158945.00 2218162.00 2887.00 ZAR Million [+]
Money Supply M3 2690393.00 2639984.00 2690393.00 4796.00 ZAR Million [+]
Foreign Exchange Reserves 531573.00 556838.00 556838.00 153.00 ZAR THO Million [+]
Loans to Private Sector 2765789.00 2752412.00 2765789.00 4051.00 ZAR Million [+]
Banks Balance Sheet 4126496.00 4040554.00 4126496.00 114781.00 ZAR Million [+]
Central Bank Balance Sheet 583507.00 605206.00 605206.00 543.00 ZAR Million [+]