South Africa Interest Rate  1998-2017 | Data | Chart | Calendar | Forecast

The South African Reserve Bank kept its benchmark repo rate on hold at 7 percent at its May 25th 2017 meeting, in line with market expectations. Policymakers said that although the inflation outlook has improved over the near term, the longer-term forecast is unchanged, remaining close to the upper limit of the target range. In addition, the rand and domestic bond yields benefited from increased global capital inflows to emerging markets which largely offset the impact of the sovereign credit ratings downgrade. However, with further ratings decisions imminent, risks remain for a further depreciation against the backdrop of continued global and domestic political uncertainty. Also, domestic growth prospects have deteriorated. The central bank revised down inflation and growth forecasts for this year. Interest Rate in South Africa averaged 12.75 percent from 1998 until 2017, reaching an all time high of 23.99 percent in June of 1998 and a record low of 5 percent in July of 2012.

South Africa Interest Rate
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Calendar GMT Actual Previous Consensus Forecast (i)
2017-01-24 01:00 PM Interest Rate Decision 7% 7% 7% 7%
2017-03-30 01:00 PM Interest Rate Decision 7% 7% 7% 7%
2017-05-25 01:00 PM Interest Rate Decision 7% 7% 7% 7%
2017-07-20 01:00 PM Interest Rate Decision 7% 7%
2017-09-21 01:00 PM Interest Rate Decision 7%
2017-11-23 01:00 PM Interest Rate Decision 7%




South Africa Holds Repo Rate At 7%


The South African Reserve Bank kept its benchmark repo rate on hold at 7 percent at its May 25th 2017 meeting, in line with market expectations. Policymakers said that although the inflation outlook has improved over the near term, the longer-term forecast is unchanged, remaining close to the upper limit of the target range. In addition, the rand and domestic bond yields benefited from increased global capital inflows to emerging markets which largely offset the impact of the sovereign credit ratings downgrade. However, with further ratings decisions imminent, risks remain for a further depreciation against the backdrop of continued global and domestic political uncertainty. Also, domestic growth prospects have deteriorated. The central bank revised down inflation and growth forecasts for this year.

Excerpts from the statement by Governor Lesetja Kganyago:

The inflation forecast of the Bank has improved over the near term, but is unchanged in the outer quarters. In line with the previous forecast, headline consumer price inflation is expected to remain within the range for the rest of the forecast period. Inflation is expected to average 5.7% this year compared with 5.9% previously, while the forecast for 2018 has moderated by 0.1 percentage point to 5.3%. The forecast average for 2019 is unchanged at 5.5%.

The domestic growth outlook has deteriorated amid weak business and consumer confidence. The Bank’s forecast for GDP growth has been revised down for the entire forecast period, by 0.2 percentage points for 2017 and 2018, and by 0.3 percentage points in 2019. Annual growth rates of 1.0%, 1.5% and 1.7% for the forecast years are now expected. This downward revision is due in part to the expected impact of the sovereign credit ratings downgrade on domestic private sector gross fixed capital formation in particular. The downgrade is also likely to weigh on public sector investment through higher funding costs and more difficult access to funding. 

The rand remains a key upside risk to the forecast. The rand has, however, been surprisingly resilient in the face of recent domestic developments. This is partly due to offsetting factors, particularly positive sentiment towards emerging markets and the improved current account balance. The current level of the exchange rate, at below R13.00 against the dollar, is slightly stronger than at the time of the last meeting and stronger than that implicit in the starting point for the real exchange rate assumption. 

The outlook for the rand, and therefore the risks to the inflation outlook, will be highly sensitive to unfolding domestic political uncertainty, as well as decisions by the credit ratings agencies. The rand could weaken significantly in the event of a worst-case ratings downgrade scenario that could result in South African government bonds falling out of the global bond indices.

SARB | Joana Taborda | joana.taborda@tradingeconomics.com
5/25/2017 1:47:54 PM


Recent Releases

South Africa Leaves Key Rate At 7%
The South African Reserve Bank kept its benchmark repo rate on hold at 7 percent at its March 30th meeting, in line with expectations. Policymakers said the inflation outlook has improved although the exchange rate became a risk due to recent political uncertainties. Yet, policymakers added that the end of the tightening cycle has been reached.
Published on 2017-03-30

South Africa Leaves Key Rate At 7%, Lowers Growth Forecasts
The South African Reserve Bank left its benchmark repo rate on hold at 7 percent at its January 2017 meeting, as widely expected, saying the near-term outlook for inflation has deteriorated and growth remains weak. Policymakers raised inflation forecasts for 2017 to 6.2 percent from 5.8 percent due to higher international oil, domestic fuel and food prices that more than offset the more favourable exchange rate assumption. The central bank expects growth to average 0.4 percent for 2016 and to be 1.1 percent in 2017 (1.2 percent in the previous estimate).
Published on 2017-01-24

South Africa Keeps Key Rate Unchanged at 7%
The South African Reserve Bank left its benchmark repo rate on hold at 7 percent at its November of 2016 meeting, as widely expected. Policymakers said growth in the third quarter is expected to be positive, but below the level of June quarter, while left the GDP forecasts unchanged from September. The inflation reached to an 8-month high in October, after food prices picked up the most since 2009 due to severe drought, but it is expected to moderate in early 2017. The bank also noted the rand will be sensitive to changes in the stance of the US monetary policy.
Published on 2016-11-24

South Africa Leaves Key Rate on Hold in September
The South African Reserve Bank kept its benchmark repo rate unchanged at 7 percent in September of 2016 as widely expected. Policymakers said the inflation outlook has improved as earlier return to target range is seen, although growth remains subdued due to weak domestic fixed investment and low levels of business and consumer confidence. As a result, the improvement seen in the second quarter is unlikely to be sustained.
Published on 2016-09-22



South Africa Money Last Previous Highest Lowest Unit
Interest Rate 7.00 7.00 23.99 5.00 percent [+]
Interbank Rate 7.33 7.33 16.96 5.06 percent [+]
Money Supply M0 229240.00 230473.56 240465.00 415.00 ZAR Million [+]
Money Supply M1 1582113.00 1603388.00 1612380.00 1482.00 ZAR Million [+]
Money Supply M2 2573886.00 2584117.00 2600811.00 2887.00 ZAR Million [+]
Money Supply M3 3183170.00 3194507.00 3206995.00 4796.00 ZAR Million [+]
Banks Balance Sheet 4915471.00 4938998.00 4938998.00 114781.00 ZAR Million [+]
Foreign Exchange Reserves 47241.00 46690.00 51889.00 5316.00 USD Million [+]
Loans to Private Sector 3318785.00 3304992.00 3318785.00 4051.00 ZAR Million [+]
Deposit Interest Rate 6.20 5.80 18.86 5.15 percent [+]
Lending Rate 10.50 10.50 25.50 5.00 percent [+]
Central Bank Balance Sheet 697303.00 694256.00 801122.00 543.00 ZAR Million [+]


South Africa Interest Rate Notes

In South Africa, the interest rates decisions are taken by the South African Reserve Bank’s Monetary Policy Committee (MPC). The official interest rate is the repo rate. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Interest Rate - actual data, historical chart and calendar of releases - was last updated on June of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
7.00 7.00 23.99 5.00 1998 - 2017 percent Daily



interest rate by Country

Last
Brazil 10.25 May/17
Russia 9.00 Jun/17
Turkey 8.00 Jun/17
Mexico 7.00 Jun/17
India 6.25 Jun/17
Indonesia 4.75 Jun/17
China 4.35 Jun/17
Australia 1.50 Jun/17
South Korea 1.25 May/17
United States 1.25 Jun/17
Canada 0.50 May/17
United Kingdom 0.25 Jun/17
Euro Area 0.00 Jun/17
France 0.00 Jun/17
Germany 0.00 Jun/17
Italy 0.00 Jun/17
Netherlands 0.00 Jun/17
Spain 0.00 Jun/17
Japan -0.10 Jun/17
Switzerland -0.75 Jun/17