23/09/2026
SARB Responds to Inflationary Pressure with Interest Rate Hike ๐
Sad news for homeowners and prospective buyers as the South African Reserve Bank has opted to increase interest rates amid global economic uncertainty.
The South African Reserve Bank (SARB) has announced at the latest Monetary Policy Committee (MPC) meeting the decision to increase interest rates, with the repo rate now at 7.25% and the prime lending rate at 10.75%.
According to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, while many South Africans may be disappointed by the decision, it is understandable given the continued uncertainty in the global economic environment.
โThe Reserve Bank had a tough decision this month as they weighed out local inflationary pressures against an uncertain international economic environment. While inflation fell to 4.3% from 5%, it is still well above the 3% target, meaning the SARB still needs to tread carefully when considering any changes in the months to come.โ
Additionally, developments in the global economy have placed renewed pressure on fuel supplies, pushing international oil prices even higher. Should this translate into higher fuel prices locally, consumers could begin to feel the ripple effects across their everyday expenses.
โFor homeowners and prospective buyers, this can translate into higher living costs, placing additional pressure on household budgets and reducing the amount of disposable income available for bond repayments or saving towards a house,โ explains Goslett.
While an interest rate increase is never welcome news for homeowners or prospective buyers, Goslett advises existing consumers to review their monthly expenses, plan accordingly and ensure that they understand what they can comfortably afford.
For more real estate advice, get in touch with your nearest REMAX Panache.
*Announced 23 September 2026
๐ค Contact: Maryna Procter
๐ 083 204 7197
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๐ข REMAX Panache
