The South African Reserve Bank unanimously decided to axe its key repo rate by 100 bps to 5.25% during its March 2020 meeting, surprising markets who expected a smaller 50 bps cut, amid growing uncertainty over the impact of the coronavirus crisis on the already fragile economy. It was the 2nd straight rate cut so far this year, bringing borrowing costs to the lowest since December of 2013. Policymakers said that low inflation has created space for monetary policy to respond to deteriorating economic conditions. The economy is now expected to contract 0.2% in 2020 (vs prior 1.2% growth), before expanding 1% in 2021 (vs prior 1.6%) and 1.6% in 2022 (vs prior 1.9%). Current forecasts point to inflation at 3.8% in 2020 (vs prior 4.7%), 4.6% in 2021 (unrevised) and 4.4% in 2022 (vs prior 4.5%). The bank reiterated that monetary policy cannot on its own improve the potential growth or reduce fiscal risks and urged the government to implement prudent macroeconomic policies.
Interest Rate in South Africa averaged 12.39 percent from 1998 until 2020, reaching an all time high of 23.99 percent in June of 1998 and a record low of 5 percent in July of 2012. 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 April of 2020. source: South African Reserve Bank
Interest Rate in South Africa is expected to be 5.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in South Africa to stand at 5.25 in 12 months time. In the long-term, the South Africa Interest Rate is projected to trend around 5.00 percent in 2021, according to our econometric models.