Interest rates
SARB repo & prime lending rate
The two interest rates that anchor every home loan, vehicle finance contract, and personal loan in South Africa.
- Repo rate
- 7%
- Prime rate
- 10.50%
Monetary Policy Committee policy rate
Repo + 3.50pp
How the SARB sets the repo
The South African Reserve Bank's Monetary Policy Committee meets roughly every two months and adjusts the repo rate to keep inflation inside the 3–6% target band. The repo is the rate at which commercial banks borrow short-term liquidity from the SARB, so any change ripples through the entire credit market within hours.
Why prime sits 3.50 points above repo
Since 1998 every major South African bank has quoted prime as repo plus 3.50 percentage points. It is convention rather than regulation, but in practice all four big banks move their prime in lockstep with the SARB on the day of an MPC decision. Calculators on this site use prime as the default rate for secured lending.
Apply this rate
Frequently asked questions
What is the current South African repo rate?
The current SARB repo rate is the headline figure shown at the top of this page. It is updated immediately after every Monetary Policy Committee meeting (roughly every two months). The repo is the rate at which commercial banks borrow short-term liquidity from the South African Reserve Bank.
What is the prime lending rate in South Africa today?
Prime sits 3.50 percentage points above the SARB repo rate by convention since 1998. All four major South African banks quote the same prime rate and move it together on the day of an MPC decision. It is the default benchmark for home loans, vehicle finance, and personal loans.
How often does the repo rate change?
The MPC meets six times a year (January, March, May, July, September, November). It can hold, cut, or hike in 25 or 50 basis-point increments. Between meetings the rate is fixed.
How does the repo rate affect my home loan?
Most South African home loans are quoted as "prime ± x%". If prime moves up 25 basis points, your interest rate rises by the same amount the day after the MPC announcement, and your monthly instalment recalculates within the next billing cycle.
Is the SARB independent of the government?
Yes. The South African Reserve Bank is constitutionally independent and mandated to protect the value of the currency through an inflation target band of 3–6%. The Minister of Finance appoints the Governor; the MPC sets the repo rate without political instruction.
Source: South African Reserve Bank WebIndicators API · As of 2026-05-06