This afternoon, the Monetary Policy Committee of the South African Reserve Bank (‘SARB’) convened its fourth meeting of 2025. Against the backdrop of market uncertainty, and as widely predicted by most economists and various financial institutions, SARB has encouragingly elected to lower the repo rate to 7%, effective Friday, 1st August 2025. Correspondingly, the prime lending rate is now 10.5%.
The decision marks the second consecutive cut of 0.25% and is supported by a decline in global oil prices, weak economic growth, and steady consumer inflation, which increased slightly from 2.8% in May to 3% in June. An additional factor necessitating an albeit modest cut is the need to cushion the economy against the USA’s impending 30% tariff on goods imported from South Africa.
Significantly, another interest rate adjustment will no doubt be welcomed by homeowners with bond repayments and the broader property industry, with demand for real estate from first-time purchasers likely to increase in light of enhanced affordability. Thinking of purchasing property? Make your dream home a reality today by following our five tips to secure bond approval.
While interest rates may change, STBB remains committed to your transaction, however big or small. Keep track of the impact of interest rate adjustments and property-related taxes on your transactions by downloading our revolutionary STBB Direct mobile application. With STBB Direct, you can perform convenient cost calculations and receive live updates of your matters – anytime and from anywhere. Download STBB Direct from the Apple App Store or Google Play today!
For further information or to consult with one of our property law attorneys, contact us at info@stbb.co.za.
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