What is the current prime interest rate in South Africa?
As of 30 May 2025, the current prime interest rate in South Africa stands at 10.75%. This follows a historic series of rate cuts by the South African Reserve Bank (SARB), marking the fourth consecutive reduction since September 2024.
The SARB controls the repo rate (repurchase rate) – the interest rate at which it lends money to South African banks. The repo rate directly influences the prime lending rate, which is the benchmark interest rate banks use when lending money to customers. The prime rate is calculated as the repo rate plus the bank’s margin, allowing banks to cover costs and make a profit on their loans. As of now, the repo rate is 7.25%, reduced from 7.50% due to the latest 25 basis point cut announced on 29 May 2025 and effective the next day.
Timeline of recent SARB rate cuts:
- September 2024: Repo rate cut from 8.25% to 8.00%, reducing prime from 11.75% to 11.50%
- November 2024: Repo rate lowered to 7.75%, prime lending rate to 11.25%
- January 2025: Repo rate cut again to 7.50%, prime lending rate to 11.00%
- May 2025: Latest cut to repo rate of 7.25%, bringing prime lending rate to 10.75%
This reflects a total reduction of 100 basis points (1%) in the prime lending rate since September 2024.
