What does repo rate mean?

The repo rate is the rate at which the South African Reserve Bank lends to commercial banks.

Banks lend at a rate that is slightly higher than the repo rate, to cover their basic profit margin. This is known as the prime lending rate.

The SARB adjusts the repo rate when they meet every few months.

The last time they decreased it was in November 2024, when it was bumped down to 7.75%, making the prime lending rate 11.25%

Since then, the SARB has left the rate untouched, and experts believe this trend will continue.