sa rand exchange rate
The South African Rand. Photo: iStockPhoto

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When is the next interest rate announcement?

There will be three more interest rate announcements in 2023, the next of which will take place next week on Thursday, 20 July at 15:00. Following that, the remaining dates for the year are Thursday, 21 September and Thursday, 23 November. Early suggestions are there could well be yet another interest rate hike next Thursday, dealing yet another blow to South Africans in […]

sa rand exchange rate
The South African Rand. Photo: iStockPhoto

There will be three more interest rate announcements in 2023, the next of which will take place next week on Thursday, 20 July at 15:00.

Following that, the remaining dates for the year are Thursday, 21 September and Thursday, 23 November.

Early suggestions are there could well be yet another interest rate hike next Thursday, dealing yet another blow to South Africans in debt.

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As a reminder, the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) voted to hike interest rates by 50 basis points in May.

That decision took the country’s repurchase rate to 8.25% while the prime lending rate rose to 11.75%.

Watch this space for next week’s announcement.

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WHAT YOU ARE CURRENTLY PAYING ON YOUR BOND REPAYMENTS

Currently, on a home loan of R1 million at the new prime rate (11.75%), the latest hike will increase payments by R344 a month, while a R2 million bond outstanding with now cost R689 more each month.

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The table below shows both ‘old’ and ‘new’ monthly bond repayments on various bond values assuming no deposit and that repayments are at prime:

Bond value (20 years) Old monthly cost (11.25%) New monthly cost (11.75%) Change
R750 000 R7 869 R8 128 +R259
R800 000 R8 394 R8 670 +R276
R850 000 R8 919 R9 212 +R293
R900 000 R9 443 R9 753 +R310
R950 000 R9 968 R10 295 +R327
R1 000 000 R10 493 R10 837 +R344
R1 500 000 R15 739 R16 256 +R517
R2 000 000 R20 985 R21 674 +R689
R2 500 000 R26 231 R27 093 +R862
R3 000 000 R31 478 R32 511 +

R1 032

R3 500 000 R36 724 R37 930 +

R1 206

R4 000 000 R41 970 R43 348 +

R1 378

R4 500 000 R47 217 R48 767 +

R1 550

R5 000 000 R52 463 R54 185 +

R1 722