A quick word on interest rates

A quick word on interest rates

• The South African Reserve Bank (SARB) will hold its next Monetary Policy Committee meeting on 29 May 2025.
• Changes to the Prime lending rate, if any, will be announced afterwards.
• Prime was reduced by 0.25% to 11.00%, in January 2025.
• (Prime is essentially the cost of borrowing and is particularly relevant to our business because it determines the price of home loans)
• There are a range of views from economists and the major banks. Almost all of them expect the Reserve Bank to leave rates unchanged at the May meeting. That said, most still anticipate some easing later this year by at least 0.5%
• From what we’re seeing in the market, buyers and sellers are under pressure. Disposable income is tight, and affordability remains a major hurdle.
• A rate cut would provide much-needed relief for households and stimulate activity — and there’s little doubt that all South Africans could use a boost sooner rather than later.