The South African Reserve Bank reduced its key interest rate by 25 basis points to 7.75% on November 21st, 2024, as anticipated, bringing borrowing costs to their lowest level since April 2023. Policymakers stressed that while inflation is well-contained in the short term, the medium-term outlook carries significant uncertainties and potential for upside risks. The Bank noted that headline inflation dipped below its target range of 3%-6% at 2.8% in October, reflecting a stronger exchange rate and lower oil prices compared to last year, with these temporary supply shocks expected to keep inflation below 4% until mid-2025. The 2024 inflation forecast was revised down to 4.5% from 4.6%, while the 2025 estimate remained unchanged at 4%, and the 2026 projection was raised to 4.6% from 4.4% due to higher electricity prices. Regarding economic growth, the central bank kept its 2024 forecast at 1.1%, increased its 2025 projection to 1.7% from 1.6%, and held its 2026 forecast steady at 1.8%. source: South African Reserve Bank
The benchmark interest rate in South Africa was last recorded at 7.75 percent. Interest Rate in South Africa averaged 11.82 percent from 1998 until 2024, reaching an all time high of 23.99 percent in June of 1998 and a record low of 3.50 percent in July of 2020. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on November of 2024.
The benchmark interest rate in South Africa was last recorded at 7.75 percent. Interest Rate in South Africa is expected to be 7.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Africa Interest Rate is projected to trend around 6.75 percent in 2025 and 5.50 percent in 2026, according to our econometric models.