Prediction: Interest rate announcement expected next week
The South African Reserve Bank’s monetary policy committee is scheduled to meet again next week, with the possibility of positive news for individuals in debt.
The South African Reserve Bank’s (SARB) monetary policy committee (MPC) is set to meet again next week, potentially bringing positive news for those with debt.
The MPC is widely expected to cut interest rates by 25 basis points (bps).
The meeting is scheduled for Thursday, 19 September with the announcement due shortly after 15:00.
As a reminder, the repo rate currently stands at 8.25% and the prime lending rate at 11.75%.
The MPC has hiked interest rates by 475 bps since 2021, despite keeping the rate unchanged for the last seven meetings.
The current repo rate of 8.25% represents a 15-year high (since 2009) and has had South Africans struggling to finance their debt.
Encouragingly, while four members of the MPC voted to keep rates unchanged at the most recent meeting in July, two at the time already voted for a 25 basis point cut.
The MPC meets every second month.
The SARB’s final meeting of the year will take place on Thursday, 21 November, where, according to BusinessTech, another 25 basis point cut is potentially on the cards.
SARB 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 South African website’s helpful 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 |