BAD interest rate news looming ahead of the weekend

South African consumers and businesses could face higher borrowing costs, with economists expecting the South African Reserve Bank’s Monetary Policy Committee (MPC) to raise interest rates by 25 basis points at its upcoming meeting on Wednesday, 23 September.

The anticipated increase comes as inflation remains elevated and rising oil prices add pressure to the domestic economy.

Consumer inflation is currently at 4.3%, above the Reserve Bank’s 3% target, while the policy rate stands at 7% and the prime lending rate at 10.5%.

Analysts say the sharp increase in international oil prices linked to heightened tensions in the Middle East could make the inflation outlook more challenging.

What an interest rate hike would mean

A 25-basis-point increase would raise the cost of borrowing for consumers and businesses with interest-linked debt.

For households with variable-rate home loans, vehicle finance or other credit, a higher repo rate can translate into increased monthly repayments.

Businesses can also face higher financing costs, potentially affecting investment decisions, cash flow and expansion plans.

At the same time, higher interest rates can help moderate demand and inflation by making borrowing more expensive.

The MPC will therefore have to balance the need to contain inflation against the impact higher borrowing costs could have on households and the wider economy.

The MPC’s decision will be announced just after 15:00 on Wednesday.

Dates for SARB MPC meeting dates in 2026

Month	Date	Outcome
January	29 January	No change
March	26 March	No change
May	28 May	25 bps hike
July	23 July	No change
September	23 September	TBA
November	19 November	TBA

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