When was the last repo rate increase in South Africa?

The South African Reserve Bank last increased the repo rate in May 2026, raising it to 7.00% and the prime lending rate to 10.50%.  Prior to that, the landscape was changed dramatically with six consecutive interest rate cuts since September 2024.

Recent rate changes

Over the last three years, we’ve seen:

• 18 months of stable rates (May 2023 – August 2024).
• Six consecutive cuts (September 2024 – November 2025).
• One rate hike (Raised by 25 basis points in May 2026)
• Total reduction: 1.25% from peak to current levels.
• Current rates: Still offering homebuyers excellent opportunities.

Impact on buying power:

The previous rate-cutting cycle has significantly improved affordability:

Example: Household income of R35,000 per month

• At 11.75% (September 2024): Could qualify for ~R1,200,000.
• At 10.50% (current): Could qualify for ~R1,400,000.
• Additional buying power: R200,000.

Opportunity for buyers

With rates remaining moderate and potential for another cut near the end of 2026, now represents an exceptional window of opportunity for:

• First-time buyers: Enhanced affordability and qualification prospects.
• Existing homeowners: Refinancing opportunities at lower rates.
• Property investors: Improved returns with lower borrowing costs.