While the cost of living in South Africa continues to seemingly go up – and up – on a daily basis, interest rates did decrease significantly over the course of 2025.
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) met six times in the year and at four of those meetings the six members elected to cut interest rates by 25 basis points.
At the other two meetings, the rates were kept on hold.
Welcome relief to debt holders
That equates to a full percentage drop from 1 January 2025 when the prime lending rate stood at 11.25% compared to it’s current 10.25%. The repo rate is currently 6.75%.
Terence Hove, Senior Financial Markets Strategist at Exness, addressed the increased cost of living in South Africa, saying “Luckily the South African Reserve Bank cut rates multiple times in its easing cycle, lowering interest rates by 100 basis in 2025 with the last 25 basis point cut at the previous November 2025 Monetary Policy Committee (MPC) meeting.
“That brought rates down to 10.25% from the previous 11.25%, which I’m sure was a welcome respite for South African debt holders.
“Now comes the challenging balancing act between lowering interest without hurting growth.”
Who are the SARB’s MPC?
The South African Reserve Bank’s monetary policy committee meets every second month to announce changes – if any – to the country’s repo and prime lending rates.
The meetings are scheduled to take place in January, March, May, July, September and November – and always on a Thursday at 15:00.
Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB – and the deciding vote if necessary.
Outcomes of SARB MPC meetings in 2025
| Month | Date | Outcome |
| January | 30 January | 25 basis point cut |
| March | 20 March | No change |
| May | 29 May | 25 basis point cut |
| July | 31 July | 25 basis point cut |
| September | 18 September | No change |
| November | 20 November | 25 basis point cut |
Dates for SARB MPC meetings in 2026
| Month | Date | Outcome |
| January | 29 January | TBA |
| March | 26 March | TBA |
| May | 28 May | TBA |
| July | 23 July | TBA |
| September | 23 September | TBA |
| November | 19 November | TBA |
Monthly bond repayment table
The table below shows the ‘old’ monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime on 1 January 2025, as well as the current repayments – and the monthly saving.
| Bond | 1 January | 31 December | Saving/month |
| R750 000 | R7 869 | R7 362 | R507 |
| R800 000 | R8 394 | R7 853 | R541 |
| R850 000 | R8 919 | R8 344 | R575 |
| R900 000 | R9 443 | R8 835 | R608 |
| R950 000 | R9 968 | R9 326 | R642 |
| R1 000 000 | R10 493 | R9 816 | R677 |
| R1 500 000 | R15 739 | R14 725 | R1 014 |
| R2 000 000 | R20 985 | R19 633 | R1 352 |
| R2 500 000 | R26 231 | R24 541 | R1 690 |
| R3 000 000 | R31 478 | R29 449 | R2 029 |
| R3 500 000 | R36 724 | R34 358 | R2 366 |
| R4 000 000 | R41 970 | R39 266 | R2 704 |
| R4 500 000 | R47 217 | R44 174 | R3 043 |
| R5 000 000 | R52 463 | R49 082 | R3 381 |
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