When was the last repo rate increase in South Africa?

The South African Reserve Bank last increased the repo rate in May 2023, raising it to 8.25%. Since then, the landscape has changed dramatically with five consecutive interest rate cuts since September 2024, bringing the repo rate down to 7.00% and the prime lending rate to 10.50% as of July 31, 2025.

Historic rate-cutting cycle:

Since the last increase in May 2023, we’ve seen:

• 18 months of stable rates (May 2023 – August 2024).
• Five consecutive cuts (September 2024 – July 2025).
• Total reduction: 1.25% from peak to current levels.
• Current rates: Lowest since the COVID-19 pandemic.

Impact on buying power:

The rate cuts have 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 at historic lows and potential for further cuts, 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.