The South African Reserve Bank’s (SARB’s) financial coverage committee (MPC) met for the primary time in 2025 on Thursday.
For the most recent finance information, bookmark The South African website’s devoted part for free-to-read content material
And there was some GOOD information for South Africa’s householders and people seeking to enter the property marketplace for the primary time.
The MPC selected a 25 foundation level lower which little doubt got here as welcome information to all these South Africans in debt.
The resolution was in keeping with expectations on the again of decrease inflation in South Africa in latest months.
Reserve Bank Governor Lesetja Kganyago confirmed that the choice was not unanimous and that 4 MPC members voted for a 25 foundation level lower, whereas the remaining two members most popular charges to have remained unchanged.
The repo price now stands at 7.50% whereas the prime lending price is 11%.
The subsequent MPC assembly will probably be on Thursday, 20 March.
At this stage there’s NOT anticipated to be one other price lower in March.
What a 25 foundation level lower means in financial phrases
By approach of an instance (see graph beneath), due to the most recent rate of interest lower, 20-year repayments on the new prime price of 11% on the common home bond in South Africa of R1 458 924 will now value R15 059 per thirty days to finance.
That represents a month-to-month saving of R249 per thirty days.
Over the course of 20 years (240 months), that equates to a complete saving of R59 760 – on the (unlikely) assumption that there aren’t any additional rate of interest adjustments throughout that interval.
But listed below are the scary numbers …
To finance a R1 458 924 bond over 20 years on the new prime lending price (11%) will NOT value R1 458 924.
In truth, it’s going to value a staggering R3 614 123.
Do the sums your self:
R15 059 x 240 months = R3 614 160 (give or take just a few rands)
Who are the SARB?
The South African Reserve Bank’s (SARB’s) financial coverage committee (MPC) meets each second month to announce adjustments – if any – to the nation’s repo and prime lending charges.
The conferences happen in January, March, May, July, September and November – and at all times on a Thursday at 15:00.
Currently, the committee contains of six individuals, with Lesetja Kganyago holding the place of governor of the SARB.
| Month | Date |
| January | 30 January – 25 foundation level lower |
| March | 20 March |
| May | 29 May |
| July | 31 July |
| September | 18 September |
| November | 20 November |
Monthly bond reimbursement desk
The South African website’s desk beneath compares the new month-to-month bond repayments on varied bond values over a 20-year interval assuming no deposit and repayments at prime, to the now previous value after the 25 foundation level lower – and the month-to-month saving that entails:
| Bond | Old (11.25%) | New (11%) | Saving |
| R750 000 | R7 869 | R7 741 | R128 |
| R800 000 | R8 394 | R8 258 | R136 |
| R850 000 | R8 919 | R8 774 | R145 |
| R900 000 | R9 443 | R9 290 | R153 |
| R950 000 | R9 968 | R9 806 | R162 |
| R1 000 000 | R10 493 | R10 322 | R171 |
| R1 458 924 | R15 308 | R15 059 | R249 |
| R1 500 000 | R15 739 | R15 483 | R256 |
| R2 000 000 | R20 985 | R20 644 | R341 |
| R2 500 000 | R26 231 | R25 805 | R426 |
| R3 000 000 | R31 478 | R30 966 | R512 |
| R3 500 000 | R36 724 | R36 127 | R597 |
| R4 000 000 | R41 970 | R41 288 | R687 |
| R4 500 000 | R47 217 | R46 448 | R769 |
| R5 000 000 | R52 463 | R51 609 | R854 |
To hire or purchase (and repay a bond): What do YOU do?
Let us know by leaving a remark beneath, or ship a WhatsApp to 060 011 021 1
Subscribe to The South African web site’s newsletters and observe us on WhatsApp, Facebook, X and Bluesky for the most recent information.