What did the SARB Governor say about interest rates?
"So far, our modeling indicates that prevailing policy settings are sufficient to return inflation to target after the initial shock has passed," Lesetja Kganyago, governor of the South African Reserve Bank, told the Italian-South African Chamber of Trade and Industries, as reported by Daily Investor on 1 November 2026. He also stressed that the Bank would "act as needed to prevent higher inflation from becoming entrenched."
The remarks matter because of where they land. Inflation has run above the Bank's 3% target since March — headline CPI was 4.4% in September, per the SARB's own MPC statement — and 2026 has already brought two hikes, taking the repo rate to 7.25% and prime to 10.75%, effective 25 September 2026. A governor who says current settings are sufficient is saying the rates already in place are doing the work. He also welcomed the mid-term budget's direction: debt-to-GDP has peaked, the deficit of 3.9% of GDP is smaller than forecast, and revenue is outperforming.
What does the speech mean for the 19 November MPC decision?
Read plainly, this is a hold signal, not a cut signal. If prevailing settings are sufficient to return inflation to target, there is no need to add another hike — and no case for easing early either. The Governor framed remaining action as conditional — the Bank will "act as needed" — which is committee language for watching the data, not pre-announcing a move. The MPC decides on Thursday 19 November 2026, with the statement at about 15:00 SAST. The honest reading: the record this year is hike, hold, hike, and the Governor's own words point to the current level doing the work — but the SARB publishes no rate path, and no direction is guaranteed. This article is not a forecast. For the published projections in full, see our interest rate forecast for South Africa.
What would a rate cut save on your bond?
A cut is not what the speech promises — but if the committee does move on 19 November 2026 or in 2027, here is what 25 basis points would be worth. bond.co.za's calculation, at a 20-year term and prime with no margin:
| Bond size | At 10.75% (today) | At 10.50% (−25bp) | Saving / month |
|---|---|---|---|
| R 1 000 000 | R 10 152 | R 9 984 | −R 168 |
| R 1 500 000 | R 15 228 | R 14 976 | −R 253 |
| R 2 000 000 | R 20 305 | R 19 968 | −R 337 |
These are estimates, not predictions. Your actual rate may be prime plus or minus a margin depending on your bank, deposit and credit profile — ooba reports registered bonds average about 0.67% below prime, so your saving could be larger or smaller than the table shows. To run both scenarios at your own numbers, use the bond repayment calculator or the rate increase impact calculator.
What should home buyers do before 19 November?
Two practical moves. First, size your budget on today's rates: banks size a home loan against the instalment, not the purchase price — under the National Credit Act the rule of thumb is that the repayment should not exceed about 30% of your gross monthly income. A hold keeps affordability exactly where it is; any future cut improves it. Second, get pre-approved before the decision — a certificate shows you what you qualify for at today's 10.75% while you house-hunt, so you can act the moment a suitable property appears, whatever the MPC announces.
(Last updated 5 November 2026. Quotes per Daily Investor, 1 November 2026; rate figures verified against the SARB September 2026 MPC statement and the SARB MPC calendar listed below. Repayment examples: 20-year term at prime, no margin — your actual rate may be prime plus or minus a margin.)