South Africa Interest Rate

The benchmark interest rate in South Africa was last recorded at 5.50 percent. Interest Rate in South Africa is reported by the South African Reserve Bank. Interest Rate in South Africa averaged 13.23 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. 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. 2014-04-19

Actual Previous Highest Lowest Forecast Dates Unit Frequency
5.50 5.50 23.99 5.00 5.50 | 2014/04 1998 - 2014 Percent Monthly

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South Africa Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-09-19 02:00 PM South Africa
Interest Rate Decision
5.0% 5.0% 5.0% 5%
2013-11-21 01:20 PM South Africa
Interest Rate Decision
5.0% 5.0% 5.0% 5%
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% 5.25%
2014-07-17 02:00 PM South Africa
Interest Rate Decision
5.5%
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Money Last Previous Highest Lowest Forecast Unit
Interest Rate 5.50 2014-03-27 5.50 23.99 5.00 5.50 2014-04-30 Percent [+]
Foreign Exchange Reserves 537104.00 2014-02-28 556657.00 556657.00 153.00 550946.37 2014-03-31 ZAR Thousand Million [+]
Interbank Rate 5.38 2014-04-30 5.37 23.50 1.58 5.50 2014-05-31 Percent [+]
Loans to Private Sector 2649069.00 2014-02-28 2628175.00 2649069.00 4051.00 2666182.29 2014-03-31 ZAR Million [+]
Money Supply M0 181240.00 2014-03-31 177851.00 193902.00 415.00 182344.61 2014-04-30 ZAR Million [+]
Money Supply M1 1123332.00 2014-02-28 1120700.00 1137152.00 1482.00 1144549.36 2014-03-31 ZAR Million [+]
Money Supply M2 2057528.00 2014-02-28 2059117.00 2059117.00 2887.00 2081408.51 2014-03-31 ZAR Million [+]
Money Supply M3 2535937.00 2014-02-28 2529898.00 2535937.00 4796.00 2552850.90 2014-03-31 ZAR Million [+]
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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.

Excerpt from the statement by Gill Marcus, Governor:

The Bank’s forecast for economic growth has declined marginally to 2.6 percent in 2014, compared with 2.8 percent previously, while the forecast for 2015 has been revised down from 3.3 per cent to 3.1 percent. The risks to this forecast are seen to be on the downside, given the protracted strike in the platinum sector and electricity supply constraints.

The Monetary Policy Committee is acutely aware of the policy dilemma of rising inflation pressures in a subdued economic growth environment. Despite a marginal improvement in the medium term inflation forecast, the trajectory remains uncomfortably close to the upper end of the target range. 

The main upside risk to the forecast continues to come from the exchange rate, which, despite the recent relative stability, remains vulnerable to global rebalancing. The expected normalization of monetary policy in advanced economies is unlikely to be linear or smooth, and the timing and pace is uncertain.  

The rand is also vulnerable to domestic idiosyncratic factors, including protracted work stoppages, electricity supply constraints, and the slow adjustment of the current account deficit. Pass-through from the exchange rate to prices has been relatively muted to date but there is some evidence that it is accelerating. However, the forecast already incorporates a higher pass-through than has been experienced up to now. 

At the same time, the domestic economic outlook remains fragile, with the risks assessed to be on the downside. Demand pressures remain benign as consumption expenditure continues to slow amid weakening credit extension to households and high levels of household indebtedness. The upward trend in the core inflation forecast is assessed to reflect exchange rate pressures rather than underlying demand pressures. 

Given the lags with which monetary policy operates, the MPC will continue to focus on the medium term inflation trajectory. The committee is aware that too slow a pace of tightening could undermine inflation expectations and may require more aggressive tightening in the future. Consistent with our mandate, a fine balance is required to ensure that inflation is contained while minimizing the cost to output. 

The real policy rate is currently below what can be considered normal in the long run and is likely to increase over the medium term. The pace of tightening will depend on a number of factors including projected inflation, inflation expectations, the state of the economy and global developments. 

Reserve Bank of South Africa | Joana Taborda | joana.taborda@tradingeconomics.com
3/27/2014 1:50:36 PM

RECENT RELEASES

Reserve Bank of South Africa Raises Rate by 50bps
At its January 29th meeting, Reserve Bank of South Africa decided to raise the repurchase rate by 50 bps to 5.5 percent. It is the first rate hike in nearly six years, aiming to protect the rand and curb expected inflationary pressures. Published on 2014-01-29

South Africa Monetary Policy Unchanged in November
At its November 21st meeting, Reserve Bank of South Africa decided to leave the repurchase rate on hold at 5 percent as widely expected, as a weaker rand continues to pose upside risks to the inflation rate. Published on 2013-11-21


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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