Economists expect the SARB's Monetary Policy Committee to keep interest rates on hold when they meet on Thursday.
Economists expect the SARB's Monetary Policy Committee to keep interest rates on hold when they meet on Thursday. Image: SARB

Home » Here’s what to expect from Thursday’s interest rate announcement

Here’s what to expect from Thursday’s interest rate announcement

Economists expect the SARB’s Monetary Policy Committee to keep interest rates on hold when they meet on Thursday.

Economists expect the SARB's Monetary Policy Committee to keep interest rates on hold when they meet on Thursday.
Economists expect the SARB's Monetary Policy Committee to keep interest rates on hold when they meet on Thursday. Image: SARB

Economists expect the South African Reserve Bank (SARB) to keep interest rates on hold in the country when its Monetary Policy Committee (MPC) meets for the second time in 2025 on Thursday, 20 March at 15:00.

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However, there are a handful of more bullish economists who anticipate another 25 basis point cut.

As a reminder, there have been three consecutive 25 basis point cuts since September 2024.

The MPC will have had just over a week to digest the Budget Speech news and decide what to do with interest rates in the country.

Meanwhile, Statistics South Africa (StatsSA) released its latest annual consumer inflation data on Wednesday.

The data showed no change in February from 3.2% the previous month.

What did the MPC decide in January 2025?

There was some good news for South Africa’s homeowners – and those looking to enter the property market for the first time – back in January when the MPC decided on a 25 basis point cut which no doubt came as welcome news to all those South Africans in debt.

The repo rate thus currently stands at 7.50% while the prime lending rate is 11%.

Who are the SARB?

The South African Reserve Bank’s (SARB’s) monetary policy committee (MPC) meets every second month to announce changes – if any – to the country’s repo and prime lending rates.

The meetings take place in January, March, May, July, September and November – and always on a Thursday at 15:00.

Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB.

MonthDateOutcome
January30 January25 basis point cut
March20 March?
May29 May
July31 July
September18 September
November20 November

Monthly bond repayment table

The South African website’s table below shows the current monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime.

Should the interest rates remain on hold as is expected, the below table will remain accurate for the next two months at very least.

BondCurrent (11%)
R750 000R7 741
R800 000R8 258
R850 000R8 774
R900 000R9 290
R950 000R9 806
R1 000 000R10 322
R1 500 000R15 483
R2 000 000R20 644
R2 500 000R25 805
R3 000 000R30 966
R3 500 000R36 127
R4 000 000R41 288
R4 500 000R46 448
R5 000 000R51 609

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