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South Africa’s Reserve Bank Cuts Repo Rate by 25 Basis Points, Prime Falls to 10.25%

Most of the relief is projected for 2026 given the typical policy lag.

Overview

  • Governor Lesetja Kganyago announced the move after the Monetary Policy Committee’s three-day meeting in Pretoria on November 20.
  • The repo rate is now 6.75%, which reduces borrowing costs immediately for households and businesses.
  • Standard Bank’s Elna Moolman estimates the peak boost to consumer spending will arrive in 10–12 months.
  • Moolman expects further rate relief in 2026 to be gradual rather than delivered at consecutive meetings.
  • Government and Cosatu welcomed the decision, citing relief for indebted workers and support for small firms and confidence.