Overview
- Public comments on the proposal are invited until March 20, 2026, following the release of a formal discussion paper.
- Since 2001 the prime rate has been set 350 basis points above the policy rate, with current levels cited as 10.25% versus 6.75%.
- The Reserve Bank estimates more than 12 million contracts worth over R3.2 trillion reference prime, with retail mortgages and consumer loans comprising about 37% of exposure.
- The transition plan includes robust fallback language for new agreements, legislative safe-harbour provisions for legacy contracts, and broad stakeholder engagement, with implementation expected only after Jibar cessation and no earlier than 2027.
- The paper states loan pricing would not reset, as banks would continue to price credit as a spread over the policy rate based on funding conditions and borrower risk.