This afternoon, the Monetary Policy Committee of the South African Reserve Bank (‘SARB’) concluded its penultimate meeting of 2026. In what some economists termed ‘a close call’ and others a foregone conclusion, SARB has elected to raise the repo rate by 0.25% to 7.25%, effective immediately. The decision was unanimous. As a result, the prime lending rate is now 10.75%.
Citing downside risks to economic growth and the contraction of the country’s economy in the second quarter, the rate hike was heavily influenced by ongoing geo-political tensions, the escalation of conflict in the Middle East, and the consequent disruption to oil supply shipping routes, which generate additional inflationary pressures. Indeed, SARB explicitly described the global economy as ‘not in a healthy space’.
While consumer inflation increased only slightly from 4.3% in July to 4.4% in August, SARB further confirmed that it is raising its inflation expectations – a move driven largely by rising fuel costs.
For homeowners – and prospective homeowners – with bonded property, the impact of the rate hike may be felt through higher monthly mortgage bond repayments. For real estate professionals, the increase may lead to slightly lower demand from potential purchasers.
While interest rates may fluctuate, STBB remains committed to your property transaction – however big or small.
For expert legal advice with all commercial property and property law matters, contact our experienced team of real estate attorneys.
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