SARB interest rate on hold
The South African Reserve Bank’s Monetary Policy Committee sat for its second meeting of 2024 on Wednesday, 27 March. Image: SARB

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South African Reserve Bank keeps interest rates on hold

The SARB’s Monetary Policy Committee has elected to keep interest rates on hold after meeting on Wednesday, 27 March.

SARB interest rate on hold
The South African Reserve Bank’s Monetary Policy Committee sat for its second meeting of 2024 on Wednesday, 27 March. Image: SARB

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has elected to keep interest rates on hold after meeting for the second time in 2024 on Wednesday, 27 March.

The MPC meets every second month.

That decision means the repo rate will remain at 8.25% while the current prime lending rate stays at 11.75%.

It was the fifth consecutive meeting that the interest rates have remained on hold.

Reserve Bank governor Lesetja Kganyago confirmed that the vote was unanimous among the five-member committee.

The five-person committee will expand to six when Mampho Modise takes over as Deputy Governor next week.

While it’s ‘good’ news for those who were fearful of an unwanted hike, it represents bad news for those desperately seeking a cut.

Any cut has now been pushed back to May, July – or later in 2024.

Kganyago recently told Bloomberg that the SARB won’t succumb to election pressures as the country prepares to vote in the general elections on Wednesday, 29 May 2024.

SARB MPC MEETING DATES FOR 2024

MonthDate
January25 January
March27 March
May30 May
July18 July
September19 September
November21 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 000R8 128
R800 000R8 670
R850 000R9 212
R900 000R9 753
R950 000R10 295
R1 000 000R10 837
R1 500 000R16 256
R2 000 000R21 674
R2 500 000R27 093
R3 000 000R32 511
R3 500 000R37 930
R4 000 000R43 348
R4 500 000R48 767
R5 000 000R54 185

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