The South African Reserve Bank (SARB) has decided to maintain its repo rate at 7.0%, leaving the prime lending rate steady at 10.5%. This move offers some reprieve to homeowners with variable-rate mortgages, who will not see an increase in their monthly payments for now.
With the prime rate holding firm, a R2 million home loan stretched over 20 years entails a monthly repayment of R19,968. The decision to keep interest rates unchanged has spared borrowers from an anticipated R335 hike in monthly payments, which would have occurred if a 25-basis-point rate increase had been implemented.
Over the duration of two decades, homeowners are set to repay a total of approximately R4.79 million, encompassing both the principal amount borrowed and the interest accrued. This outcome provides some financial stability for borrowers amid ongoing economic uncertainties.
The decision by the SARB’s Monetary Policy Committee was not unanimous. Out of its members, four voted to leave the rates unchanged, while two advocated for a 25-basis-point hike, citing concerns over inflation as a potential risk.
The SARB is slated to make its next interest rate announcement on 23 September 2026, a date that will be closely watched by economists and borrowers alike for signs of future monetary policy shifts.