The South African Reserve Bank unanimously reduced its key interest rate by 25 basis points to 7% on July 31, 2025, the lowest level since November 2022. The cut was widely anticipated amid concerns over a new US tariff regime threatening the already fragile economy. Policymakers emphasized ongoing global uncertainty, noting that many countries have yet to finalize trade agreements before the US tariff deadline. They also observed a stronger rand and more moderate inflation expectations, with June’s CPI showing headline inflation at 3% and core inflation at 2.9%, both near the lower bound of the target range. Inflation is expected to rise modestly to 3.3% this year before stabilizing at 3% in 2027. Meanwhile, the economy’s outlook remains subdued due to persistent supply-side challenges, particularly in logistics. Consequently, growth forecasts were revised down to 0.9% in 2025 (from 1.1% previously) and 1.3% in 2026 (from 1.5%), but raised to 2% in 2027 (from 1.8%). source: South African Reserve Bank
The benchmark interest rate in South Africa was last recorded at 7 percent. Interest Rate in South Africa averaged 11.77 percent from 1998 until 2025, reaching an all time high of 23.99 percent in June of 1998 and a record low of 3.50 percent in July of 2020. This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2025.
The benchmark interest rate in South Africa was last recorded at 7 percent. Interest Rate in South Africa is expected to be 7.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Africa Interest Rate is projected to trend around 6.00 percent in 2026 and 5.50 percent in 2027, according to our econometric models.