# Repo rate in South Africa: what it means for your bond - Canonical URL: https://bond.co.za/guides/repo-rate-south-africa - Author: Neil B - Published: 2026-09-13 - Last updated: 2026-10-09 1. [Home](https://bond.co.za/) 3. [Guides](https://bond.co.za/guides) 5. [Interest rates](https://bond.co.za/guides/rates) 7. Repo rate in South Africa Interest rates The South African repo rate is **7.25%** per annum, effective 25 September 2026 — which puts the prime lending rate at **10.75%**. On a R 1 500 000 bond over 20 years at prime, that is about **R 15 228 a month**. The next MPC decision lands on 19 November 2026. By [Neil B](https://bond.co.za/expert) · Checked against published primary sources · Published 2026-09-13 · Last verified 2026-10-09 [See what it means for your repayment](https://bond.co.za/bond-calculator)[How pre-approval works](https://bond.co.za/home-loans/pre-approval) Source: South African Reserve Bank (SARB)Effective 25 September 2026 Current benchmark23 September 2026 7.25%Repo (SARB policy) rate 10.75%Prime lending rate Prime is conventionally the repo rate plus 3.5 percentage points. Banks adjust prime after each MPC announcement. Source: [South African Reserve Bank (SARB) MPC statement](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/september). Last verified 23 September 2026. Loan amountR 1 500 000 Term20 years Interest rate10.75% (prime) Monthly repaymentR 15 228 Total repaid over 20 yearsR 3 654 824 Excludes bond registration and transfer costs. A quarter-percent rate difference on this loan changes the repayment by R 254 a month — which is why offers are worth comparing. [See the full bond calculator](https://bond.co.za/bond-calculator) Repo rate today7.25%Effective 25 September 2026 Prime lending rate today10.75%Repo + 3.5 points One +25bp hike on a R 1 500 000 bond\+ R 254/monthOver 20 years at prime — illustration, not a quote Next MPC decision19 November 2026Announced 15:00 SAST Sources: SARB MPC statement (verified 23 September 2026) and the SARB MPC calendar. Repayment figures computed from prime with the standard reducing-balance formula. ## What is the repo rate in South Africa? The repo rate is the interest rate at which the South African Reserve Bank lends money to commercial banks — currently **7.25%**. It is the base cost of money in the economy, and it is the anchor under every variable-rate home loan in the country. Banks borrow from the SARB — the country's central bank and **lender of last resort** — against government bonds as collateral, and the repo rate is the price of that money. When a bank's own funding runs short, the repo rate is what it pays to top up. For a technicality worth knowing: since the SARB moved to its shortage-liquidity framework, the official instrument has been called the **SARB Policy Rate (SPR)** — “repo rate” is the older name, still used by banks, the media and most South Africans, so that is the term this guide uses. ## Who sets the repo rate in South Africa? The **Monetary Policy Committee (MPC)** of the South African Reserve Bank sets the repo rate, meeting **six times a year**. Every meeting ends with a published statement at 15:00 SAST announcing the decision, the vote split and the reasoning. There are no emergency surprises between meetings under normal conditions — the dates are on the SARB calendar months in advance, which is why bondholders can prepare for each decision. The MPC's formal target is headline inflation of **3% — a point target with a ±1 percentage point tolerance band**. When inflation runs above target, the committee tends to hold or raise the rate; when it falls back, cuts become likely. At the July 2026 meeting, for instance, inflation at 5.0% kept the committee holding — four members preferred a hold and two a 25 basis point increase. ## What is the difference between the repo rate and the prime rate? The repo rate is what banks pay to borrow from the SARB; the **prime lending rate** is what they charge their best customers. By market convention prime sits **3.5 percentage points above the repo rate** — with repo at 7.25%, prime is 10.75%. Banks set prime themselves, but in practice they move it by the same amount as the repo rate on the same effective date — the spread almost never changes, which is why “the MPC hiked” and “prime went up” are the same event. Your home loan is then priced as **prime plus or minus a personal margin** — prime minus 0.5% for a strong profile, prime plus 1% for a riskier one, as negotiated examples rather than quotes. Move the anchor and every rate built on it moves too. For the benchmark itself, see our [prime interest rate tracker](https://bond.co.za/prime-interest-rate-south-africa-today). The numbers ## How does a repo rate change affect my bond repayment? A 25 basis point MPC move is small in the headline and large over 20 years. The table below is an illustration on a R 1 500 000 loan over 20 years — test your own amount in the calculator above. Illustrative monthly repayments on a R 1 500 000 home loan over 20 years at rates around today's prime. | Scenario | Rate | Monthly repayment | Change vs prime | | --- | --- | --- | --- | | Prime − 0.25%Strong credit / healthy deposit | 10.50% | R 14 976 | − R 253 | | At primeThe benchmark | 10.75% | R 15 228 | — | | Prime + 0.25%What one 25bp MPC hike adds | 11.00% | R 15 483 | \+ R 254 | Illustrative estimate only — repayments are calculated with the standard reducing-balance formula at today's prime of 10.75% (effective 25 September 2026). The rate you are actually offered depends on your credit profile, deposit and the bank's assessment. These figures are a simple repayment illustration: they exclude an existing balance on the bond, the one-off initiation fee, the monthly service fee, insurance premiums and rates or levies, and variable-rate instalments change every time the MPC moves. It is an estimate, not an offer. For a side-by-side view, use the [rate increase impact calculator](https://bond.co.za/rate-increase-impact-calculator). Round only happens at presentation; the maths itself carries full precision. MPC calendar ## When is the next repo rate decision? The next scheduled MPC announcement is on 19 November 2026 at 15:00 SAST. Six scheduled MPC meetings a year; banks usually move prime on the same effective date. Dates below are sourced from the SARB — no outcomes are predicted here. The last three MPC decisions: date, action, and the repo and prime rates after each decision. | Meeting | Decision | Repo after | Prime after | | --- | --- | --- | --- | | 23 September 2026 | +25bpRaised the policy rate by 25 basis points to 7.25%, effective 25 September 2026 — the prime lending rate rises to 10.75%. The decision was unanimous. Headline inflation was 4.4%, with fuel prices rising again after moderating between June and August and services inflation elevated; the committee adopted a more restrictive stance to prevent second-round effects, citing an adverse global environment.[SARB statement](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/september) | 7.25% | 10.75% | | 23 July 2026 | HoldHeld the policy rate at 7.00%: headline inflation at 5.0% in June, above the 3% target point. Four committee members preferred a hold and two a 25bp increase, with oil and food-price risks from the Middle East conflict cited as upside risks to inflation.[SARB statement](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/july) | 7.00% | 10.50% | | 28 May 2026 | +25bpIncreased the policy rate by 25 basis points to 7.00%, effective 29 May 2026 — the first change since May 2023. Four members voted for the increase and two for no change, citing intensified inflation risk from the Middle East conflict and oil and food prices.[SARB statement](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/may) | 7.00% | 10.50% | | 26 March 2026 | HoldUnanimous hold at 6.75%. The Middle East conflict had only recently broken out, and the committee described its cautious stance as prudent while it watched for second-round price effects.[SARB statement](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/march) | 6.75% | 10.25% | Next scheduled announcements 19 November 2026 Source: [South African Reserve Bank (SARB) — MPC announcement webcasts](https://www.resbank.co.za/en/home/what-we-do/monetary-policy/MPC-announcement-webcasts). Always confirm against the published SARB calendar; the MPC does not signal outcomes in advance. For what bank economists publish as their rate views, see the [interest rate forecast for South Africa](https://bond.co.za/interest-rate-forecast-south-africa). ## What should I do when the repo rate changes? Check whether your bond is fixed or variable, find the margin above or below prime on your statement, and recalculate your instalment at the new rate before you rebudget — the five steps below take about ten minutes and cover both increases and cuts. 1. **Check whether your bond is fixed or variable.** Only variable-rate bonds reprice automatically after an MPC decision; a fixed rate stays put until its fixed period ends. 2. **Find your margin.** Look at your bond statement for your actual rate — prime plus or minus what? Your repayment moves by the same amount as the repo decision, applied to that base. 3. **Recalculate before you rebudget.** Run the new rate through the [bond repayment calculator](https://bond.co.za/bond-calculator) to see the exact instalment change on your balance and remaining term. 4. **Revisit your offers if you are buying.** A changed rate environment changes what banks will lend you. A current [pre-approval](https://bond.co.za/home-loans/pre-approval) from your bank should reflect the new benchmark, so ask for an older one to be refreshed. 5. **Do not chase the last decision.** The MPC sets rates looking at inflation months ahead, not at yesterday's announcement. Make property decisions on affordability you can hold through more than one rate cycle. FAQ ## Repo rate South Africa FAQs What is the repo rate in South Africa right now?+ The South African Reserve Bank’s policy rate — still widely called the repo rate — is 7.25% per annum, effective 25 September 2026. It was last changed at the 23 September 2026 MPC meeting (+25bp). Source: SARB MPC statements, verified 23 September 2026. Who sets the repo rate in South Africa?+ The Monetary Policy Committee (MPC) of the South African Reserve Bank. The committee meets six times a year, and each meeting ends with a published statement announcing the decision at 15:00 SAST. The Governor chairs the committee; the vote split (for example, 4–2 at both the May and July 2026 meetings) is disclosed in the statement. What is the difference between the repo rate and the prime rate?+ The repo rate is what banks pay to borrow from the SARB; the prime lending rate is what banks charge their best customers. By market convention prime sits 3.5 percentage points above the repo rate — with the repo at 7.25%, prime is 10.75%. Banks set prime themselves, but in practice they move it by the same amount as the repo rate on the same effective date, so the spread rarely moves. What does a repo rate change mean for my home loan?+ Most South African bonds are priced at prime plus or minus a margin, so when the MPC moves the repo rate, prime moves by the same amount and your variable-rate repayment changes at the next interest reset. On a R 1 500 000 bond over 20 years, a single 25 basis point increase adds roughly R 254 a month — an illustration, not a quote. Use the calculator above to test your own loan amount. When is the next repo rate decision in South Africa?+ The remaining scheduled 2026 MPC announcement date is 19 November 2026. Decisions are announced at 15:00 SAST on the SARB’s MPC webcast. The MPC does not pre-commit to outcomes — treat any forecast, including this site’s scenario pieces, as a scenario rather than a prediction. ## Informational disclaimer The interest rates shown are the publicly quoted SARB policy rate and commercial prime lending rate, current as at 23 September 2026. Rates change at SARB Monetary Policy Committee meetings, and individual banks may vary the exact timing or spread. The rate you are offered on a home loan depends on your credit profile, income, deposit and lender policies. Repayment figures on this page are illustrative estimates, not quotes, pre-approvals or guaranteed rates. This guide is for information only and does not constitute financial advice — speak to your bank or a qualified financial adviser before making a borrowing decision. Keep reading ## More in interest rates The most recently updated guides in this category. [Interest rates](https://bond.co.za/guides/rates) [How home loan interest works](https://bond.co.za/guides/how-home-loan-interest-works-south-africa) How home loan interest works in South Africa: the chain from the SARB MPC to your instalment at today’s prime of 10.75%, how daily accrual makes the first instalment mostly interest, and the levers that actually reduce what you pay. Updated 26 Oct 20269 min read [Interest rates](https://bond.co.za/guides/rates) [Fixed vs variable home loan rates](https://bond.co.za/guides/fixed-vs-variable-rate) Should you fix your home loan rate or stay variable: what each option costs at today’s prime, how the fixed-rate premium works, and the trade-off between certainty and flexibility. Updated 24 Oct 20267 min read [Interest rates](https://bond.co.za/guides/rates) [Prime lending rate today](https://bond.co.za/guides/prime-rate) South Africa's prime lending rate is 10.75% per annum, effective 2026-09-25 — the repo rate plus a 3.5-point spread. Banks actually price home loans from prime −1.0% to prime +2.0%, and each 25 basis point move adds about R170 a month per R1 000 000 borrowed. Updated 18 Oct 20267 min read [Browse all interest rates guides →](https://bond.co.za/guides/rates) Put the rate to work ## See what today's repo rate means for your bond Prime is 10.75% because the repo rate is 7.25%. 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