# Kganyago says current rates are high enough to beat inflation - Canonical URL: https://bond.co.za/news/kganyago-rates-high-enough-to-beat-inflation - Author: Neil B - Published: 2026-11-05 - Last updated: 2026-11-05 Market newsInterest rates Reserve Bank Governor Lesetja Kganyago says prevailing policy settings are sufficient to return inflation to target — a clear hold signal before the MPC meets on **Thursday 19 November 2026**. Repo is 7.25% and prime 10.75%; bond.co.za calculates what a 25 basis point cut would save — and what waiting costs. By [Neil B](https://bond.co.za/expert) · Checked against published primary sources · Published 2026-11-05 · Last verified 2026-11-05 sarbkganyagompcrepo-rate ![Flat illustration of a speech bubble with a level rate line beside a house — the Governor says rates are on hold.](https://bond.co.za/images/news/kganyago-rates-high-enough-to-beat-inflation.svg) ## Key takeaways - 01Governor Lesetja Kganyago said prevailing policy settings are "sufficient to return inflation to target after the initial shock has passed" — speaking to the Italian-South African Chamber of Trade and Industries, as reported by Daily Investor on 1 November 2026. - 02The rates doing that work: repo at **7.25%** and prime at **10.75%**, effective 25 September 2026, after September's unanimous 25 basis point hike — with headline inflation at 4.4% in September. - 03Read plainly, the remarks are a **hold signal, not a cut signal**: if current settings suffice, nothing needs to change on 19 November 2026. He also stressed the Bank would "act as needed to prevent higher inflation from becoming entrenched." - 04A 25 basis point _cut_ would save about **R 253 a month** on a R1.5 million bond over 20 years — an illustrative calculation, not a prediction. - 05Before 19 November 2026: get pre-approved at today's 10.75% so you know what you qualify for while rates hold — and what any move would do to it. ## 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](https://bond.co.za/interest-rate-forecast-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](https://bond.co.za/bond-calculator) or the [rate increase impact calculator](https://bond.co.za/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](https://bond.co.za/home-loans/pre-approval) — 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.) ## Frequently asked questions ### Will interest rates go down in November 2026? No one outside the Monetary Policy Committee knows, and the SARB publishes no rate path. The Governor's latest remarks — that prevailing policy settings are sufficient to return inflation to target — argue for a hold at the 19 November 2026 meeting rather than a cut or another hike, but the committee decides on the data in front of it, meeting by meeting. This is not a forecast. ### What exactly did Kganyago say about interest rates and inflation? "So far, our modeling indicates that prevailing policy settings are sufficient to return inflation to target after the initial shock has passed," Lesetja Kganyago 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." ### How much would a 25 basis point cut save on a R1.5 million bond? At prime with no margin on a 20-year term, bond.co.za's calculation: about R 253 less per month, taking prime from 10.75% to about 10.50%. Your actual rate may be prime plus or minus a margin, so your own saving may differ — run your numbers in the bond repayment calculator. ### Get your free Bond Readiness Report A personalised affordability range, a realistic rate band, estimated total upfront costs and the document checklist for your situation. We’ll open a request in your email client, ready to send. Free to use. bond.co.za is an independent educational resource — we do not provide credit, origination, legal or conveyancing services. [About our independence](https://bond.co.za/how-we-make-money). ## Sources - [Reserve Bank governor shares good news about inflation and interest rates — Daily Investor, 1 November 2026](https://dailyinvestor.com/finance/162721/reserve-bank-governor-shares-good-news-about-inflation-and-interest-rates/)Source of the Governor's quotes: "sufficient to return inflation to target after the initial shock has passed" and "act as needed to prevent higher inflation from becoming entrenched", delivered to the Italian-South African Chamber of Trade and Industries. - [SARB — Statement of the Monetary Policy Committee, September 2026](https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/september)Primary source for the rates in force today: "the committee decided to raise the policy rate by 25 basis points, to 7.25%, effective from 25 September. The decision was unanimous." Headline inflation 4.4%; a more restrictive stance adopted to prevent second-round effects. - [South African Reserve Bank (SARB) — MPC announcement webcasts](https://www.resbank.co.za/en/home/what-we-do/monetary-policy/MPC-announcement-webcasts)SARB official MPC calendar — source for the 19 November 2026 announcement date and the 15:00 SAST statement time (retrieved 2026-09-23). All repayment figures above were computed at page render from the standard annuity formula (20-year term at prime, no margin), using the prime and repo rates recorded in our central rates dataset — never hard-coded into the page. ## More market news [ When is the next interest rate decision in South Africa?The 19 November date, the 15:00 SAST timing, and every outcome costed. ](https://bond.co.za/news/when-is-the-next-interest-rate-decision-south-africa)[ What is the expected repo rate for South Africa in 2026?Hold and hike scenarios for the next MPC, with repayment tables. ](https://bond.co.za/news/expected-repo-rate-south-africa-2026)[ Will interest rates go down in South Africa?The case for cuts, examined against the 2026 hiking record. ](https://bond.co.za/news/will-interest-rates-go-down-in-south-africa)[ Will the repo rate go up in November 2026?The other side of the coin: what another hike would add. ](https://bond.co.za/news/will-repo-rate-go-up-november-2026)[ What the 2026 mid-term budget means for home buyersThe fiscal backdrop behind the Governor's remarks. ](https://bond.co.za/news/mtbps-2026-what-the-mid-term-budget-means-for-home-buyers) ## Informational disclaimer This article is for information purposes only and does not constitute financial advice or a prediction of what the Monetary Policy Committee will decide. The Governor's remarks are quoted as reported by Daily Investor on 1 November 2026; rate figures are drawn from the South African Reserve Bank's September 2026 MPC statement and the SARB MPC announcement calendar as listed in Sources; rates and meeting dates change over time. Repayment and scenario examples assume a 20-year term at prime with no margin and are estimates, not quotes or guaranteed outcomes — your actual rate may be prime plus or minus a margin, variable-rate bonds reprice at a date that varies by bank and product, and no scenario on this page is a forecast. Always confirm current rates with the South African Reserve Bank, your lender or a qualified financial adviser before making a financial decision. Figures as at 5 November 2026. Prime 10.75%, repo 7.25%, effective 25 September 2026 (SARB September 2026 MPC statement; re-verified 23 September 2026). Next MPC announcement: 19 November 2026 (SARB calendar). 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