South Africa Interest Rate  1998-2018 | Data | Chart | Calendar | Forecast

The South African Reserve Bank kept its benchmark repo rate steady at 6.75 percent on January 18th 2018, in line with market expectations. Policymakers said the inflation outlook has improved and will remain near the target range midpoint although upside risks still arise. Meanwhile, output growth remains subdued despite the recovery in the agricultural sector. Interest Rate in South Africa averaged 12.67 percent from 1998 until 2018, 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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South Africa Keeps Key Rate Steady at 6.75%


The South African Reserve Bank kept its benchmark repo rate steady at 6.75 percent on January 18th 2018, in line with market expectations. Policymakers said the inflation outlook has improved and will remain near the target range midpoint although upside risks still arise. Meanwhile, output growth remains subdued despite the recovery in the agricultural sector.

Excerpts from the statement by Governor Lesetja Kganyago:

The inflation forecast generated by the SARB’s Quarterly Projection Model (QPM) shows some improvement since November. The average forecast for 2017 is unchanged at 5.3% but has been revised downwards for 2018 and 2019 to 4.9% and 5.4% respectively from 5.2% and 5.5% previously. 

The main drivers of the more favourable forecast were the stronger exchange rate and lower electricity price assumption, following the 5.23% electricity tariff increase granted to Eskom by the National Energy Regulator of South Africa (Nersa). These effects are countered to some extent by upward adjustments to the international oil price assumptions, as well as by the impact of the sugar tax on food prices. 

Since the previous meeting of the Monetary Policy Committee (MPC), the rand has appreciated by 13.1% against the US dollar, by 9.6% against the euro, and by 10.6% on a trade-weighted basis. In the near term, the rand is expected to remain sensitive to sentiment generated by political developments.

Domestic growth prospects appear to be showing some signs of improvement, although off a low base. This follows encouraging growth rates in the second and third quarters of this year, driven to a significant degree by the exceptionally strong recovery in the agricultural sector. The SARB has revised its forecast for gross domestic product (GDP) growth up from 0.7% to 0.9% for 2017, while forecasts for 2018 and 2019 have been adjusted to 1.4% and 1.6% respectively, up from 1.2% and 1.5% previously.

Two main risks featured prominently in the MPC discussions. First is the prospect of a sovereign credit ratings downgrade, which would result in three major agencies rating South Africa’s local-currency debt as sub-investment grade. The impact on the rand and on long-bond yields could be significant, but the extent to which a universal downgrade is already priced in remains unclear. Furthermore, the assumption in the forecast for the starting point of the rand (at R12.90 against the US dollar) is weaker than current levels.

The second risk relates to international oil price developments. Although the assumptions have been raised over the forecast period, the MPC still assesses the risks to be moderately on the upside, and further upward adjustment may be required in the future.

Demand pressures are benign, with core inflation pressures relatively contained. While household consumption expenditure is expected to be supported by positive wage growth, it remains constrained. The economic growth outlook is also more positive, but fragile. At this stage, the MPC assesses the risks to the growth forecast to be more or less balanced.

In light of the recent developments and the balance of risks, the MPC has decided that it would be appropriate to maintain the current monetary policy stance at this stage. Accordingly, the repurchase rate remains unchanged at 6.75% per annum. Five members preferred an unchanged stance, while one member preferred a 25 basis point reduction.


SARB | Stefanie Moya | stefanie.moya@tradingeconomics.com
1/18/2018 2:10:41 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-09-21 01:20 PM Interest Rate Decision 6.75% 6.75% 6.5% 6.5%
2017-11-23 01:20 PM Interest Rate Decision 6.75% 6.75% 6.75% 6.75%
2018-01-18 01:00 PM Interest Rate Decision 6.75% 6.75% 6.75% 6.75%
2018-03-28 01:00 PM Interest Rate Decision 6.75%
2018-05-24 01:00 PM Interest Rate Decision
2018-07-19 01:00 PM Interest Rate Decision


South Africa Money Last Previous Highest Lowest Unit
Interest Rate 6.75 6.75 23.99 5.00 percent [+]
Interbank Rate 7.13 7.13 16.96 5.06 percent [+]
Money Supply M0 240007.00 259814.00 259814.00 415.00 ZAR Million [+]
Money Supply M1 1700792.00 1691888.00 1700792.00 1482.00 ZAR Million [+]
Money Supply M2 2805859.00 2783723.00 2805859.00 2887.00 ZAR Million [+]
Money Supply M3 3369240.00 3314166.00 3369240.00 4796.00 ZAR Million [+]
Banks Balance Sheet 5155621.00 5105244.00 5155621.00 114781.00 ZAR Million [+]
Foreign Exchange Reserves 50501.00 50722.00 51889.00 5316.00 USD Million [+]
Loans to Private Sector 3481704.00 3428053.00 3481704.00 4051.00 ZAR Million [+]
Deposit Interest Rate 7.17 6.15 18.86 5.15 percent [+]
Lending Rate 10.25 10.25 25.50 5.00 percent [+]
Central Bank Balance Sheet 677634.00 704728.00 801122.00 543.00 ZAR Million [+]


South Africa Interest Rate

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 February of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
6.75 6.75 23.99 5.00 1998 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 8.00 Jan/18
Mexico 7.50 Feb/18
Russia 7.50 Feb/18
Brazil 6.75 Feb/18
India 6.00 Feb/18
China 4.35 Jan/18
Indonesia 4.25 Feb/18
Australia 1.50 Feb/18
South Korea 1.50 Jan/18
United States 1.50 Jan/18
Canada 1.25 Jan/18
United Kingdom 0.50 Feb/18
Euro Area 0.00 Jan/18
France 0.00 Jan/18
Germany 0.00 Jan/18
Italy 0.00 Jan/18
Netherlands 0.00 Jan/18
Spain 0.00 Jan/18
Japan -0.10 Jan/18
Switzerland -0.75 Jan/18


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