How much your bond will cost after latest interest rate announcement
The South African Reserve Bank’s (SARB’s) Monetary Policy Committee (MPC) voted to keep interest rates on hold last week.
The South African Reserve Bank’s (SARB’s) Monetary Policy Committee (MPC) voted to keep interest rates on hold last Thursday.
As was widely expected, the central bank kept the repo rate at 8.25% while the current prime lending rate stayed at 11.75%.
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The MPC meets every second month.
It was the fourth consecutive meeting that the interest rates have remained on hold.
Reserve Bank governor Lesetja Kganyago confirmed the the vote was unanimous among the five-member committee.
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Meanwhile, according to the BusinessTech website, the repo rate is forecast to remain at 8.25% until the September 2024 announcement when a 25 basis point drop (to 8%) is expected.
The final SA Reserve Bank meeting of the year – in November – could see a further 25 basis point decrease (to 7.75%).
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MPC MEETING DATES FOR 2024
| Month | Date |
| January | 25 January |
| March | 27 March |
| May | 30 May |
| July | 18 July |
| September | 19 September |
| November | 21 November |
REMINDER OF MONTHLY BOND REPAYMENTS
The table below shows the current monthly bond repayments on various bond values assuming no deposit and that repayments are at prime (11.75%):
| Bond value (20 years) | Monthly cost |
| R750 000 | R8 128 |
| R800 000 | R8 670 |
| R850 000 | R9 212 |
| R900 000 | R9 753 |
| R950 000 | R10 295 |
| R1 000 000 | R10 837 |
| R1 500 000 | R16 256 |
| R2 000 000 | R21 674 |
| R2 500 000 | R27 093 |
| R3 000 000 | R32 511 |
| R3 500 000 | R37 930 |
| R4 000 000 | R43 348 |
| R4 500 000 | R48 767 |
| R5 000 000 | R54 185 |