The South African Reserve Bank raised its benchmark repo rate by 50 bps to 4.75% at its May 2022 meeting, as widely expected. This is the 4th consecutive hike and the biggest in over six years due to heightened inflation risks stemming from geopolitical tensions. Policymakers said that the overall risks to the medium-term growth outlook are assessed to be balanced, while the risks to the inflation outlook are assessed to the upside. Headline CPI forecast has been revised higher to 5.9% in 2022 (vs 5.8% in March), 5% in 2023 (vs 4.6%) and 4.7% in 2024 (vs 4.6%). Meanwhile, the GDP growth projections were cut to 1.7% in 2022 from an earlier estimate of 2%, mainly due to a combination of short-term factors including flooding in the key KwaZulu-Natal province and the resumption of rolling power blackouts. However, the GDP growth forecasts were kept unchanged at 1.9% for 2023. The implied policy rate path of the central bank model indicates gradual normalisation through 2024. source: South African Reserve Bank
Interest Rate in South Africa averaged 12.04 percent from 1998 until 2022, 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 July of 2022.
Interest Rate in South Africa is expected to be 4.75 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 7.25 percent in 2023 and 8.25 percent in 2024, according to our econometric models.