What is the difference between the repo rate and the prime rate?
The repo rate is the rate the South African Reserve Bank charges commercial banks to borrow from it. The prime lending rate is the benchmark commercial banks use to price loans to the public, including home loans. The table compares the two as at 25 September 2026.
| Repo rate | Prime lending rate | |
|---|---|---|
| Set by | SARB Monetary Policy Committee | Follows repo, plus a fixed spread |
| Who pays it | Commercial banks | Borrowers, as a pricing benchmark |
| Level, effective 25 September 2026 | 7.25% | 10.75% |
Source: SARB, re-verified 2026-09-23.
What is the current prime rate in South Africa?
The prime lending rate is 10.75% as at 25 September 2026, per the SARB. It rose from 10.50% after the Monetary Policy Committee raised the repo rate by 25 basis points to 7.25% on 23 September 2026.
How much does prime move when the repo rate changes?
Prime has moved by exactly the same amount as repo at every 2026 MPC decision: the gap stayed at 3.5 percentage points. The table is bond.co.za's tabulation of SARB's 2026 decisions; the spread column is our calculation.
| MPC date | Decision | Repo | Prime | Spread |
|---|---|---|---|---|
| 23 September 2026 | +25bp | 7.25% | 10.75% | 3.5 pts |
| 23 July 2026 | Hold | 7.00% | 10.50% | 3.5 pts |
| 28 May 2026 | +25bp | 7.00% | 10.50% | 3.5 pts |
| 26 March 2026 | Hold | 6.75% | 10.25% | 3.5 pts |
On a R 1 000 000 home loan over 20 years, the 25 basis point move to 10.75% prime adds about R 168 a month (bond.co.za calculation, as at 25 September 2026). Your own rate may sit above or below prime.
Will the prime rate go down in 2026?
Nobody can say. Prime only changes when the SARB changes the repo rate, and the next scheduled MPC announcement is on 19 November 2026 (SARB calendar). bond.co.za does not forecast the outcome. To see what a move in either direction would do to your own bond, use the rate increase impact calculator or the prime rate today page.
Rates: SARB, re-verified 2026-09-23. Repayments: bond.co.za calculation, 20-year term, interest compounded monthly, as at 25 September 2026. Last verified: 2026-09-27.