23/09/2026
π°π RESERVE BANK HIKES INTEREST RATES AGAIN AS HOUSEHOLDS FACE HIGHER DEBT COSTS
23 September 2026
South African households and businesses are set to face higher borrowing costs after the South African Reserve Bank raised the repo rate by 25 basis points to 7.25% on Wednesday.
The decision was unanimous and marks the second interest-rate increase of 2026, following another 25-basis-point hike in May.
The increase pushes the prime lending rate from 10.50% to 10.75%, affecting consumers with variable-rate home loans, vehicle finance and other credit linked to prime.
The new repo rate takes effect from Friday, 25 September 2026.
π WHAT IT MEANS FOR HOUSEHOLDS
Consumers with variable-rate debt can expect repayments to increase.
This includes:
βͺοΈ Home loans
βͺοΈ Vehicle finance
βͺοΈ Some personal loans
βͺοΈ Prime-linked credit facilities
Savers, however, could benefit from improved returns on certain savings and deposit products.
π WHY RATES WERE RAISED
Annual consumer inflation increased slightly from 4.3% in July to 4.4% in August, remaining above the Reserve Bankβs 3% inflation objective.
Higher global oil and fuel prices are also creating renewed inflation concerns, as rising transport costs can eventually feed into food prices, deliveries and other household expenses.
At the same time, South Africaβs economy remains under pressure, having contracted by 0.2% during the second quarter of 2026.
The Reserve Bank has also lowered its economic growth forecast for 2026 to 1.2%.
π³ ANOTHER PRESSURE ON ALREADY-STRETCHED BUDGETS
For households already dealing with higher food, fuel and living costs, the latest interest-rate increase adds another monthly expense.
Homeowners with variable-rate bonds will feel the impact directly, while higher borrowing costs can also affect businesses and consumers considering new finance.
The Reserve Bank now faces the difficult task of keeping inflation under control while avoiding further pressure on an already weak economy.