SARB interest rate
Governor of the SA Reserve Bank Lesetja Kganyago has announced a repo rate hike of another 50 basis points. Ouch!

The SARB Monetary Policy Committee has voted to hike interest rates by 50 basis points, dealing yet another blow to South Africans in debt.

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) voted to hike interest rates by 50 basis points on Thursday, dealing yet another devastating blow to South Africans in debt.


That decision took the country’s repurchase rate to 8.25% while the prime lending rate rose to 11.75%.

The changes will come into effect from Friday, 26 May 2023.

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The latest interest rate hike marks the 11th in the current cycle, with the total adjustment being a massive 475 basis points since the hike cycle started in November 2021.

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According to Reserve Bank governor Lesetja Kganyago, the vote was unanimous, with all five members voting for a 50 basis point hike.

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On a home loan of R1 million at the new prime rate (11.75%), the latest hike will increase payments by R344 a month, while a R2 million bond outstanding with now cost R689 more each month.

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Those with a R5 million bond with no deposit paying off the bond over a 20 year (240 month) period at prime of 11.75% will now pay R54 185 per month.

The total amount repayable is a staggering R13 004 400.

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The table below shows both ‘old’ and ‘new’ monthly bond repayments on various bond values assuming no deposit and that repayments are at prime:

repayments are at prime:

Bond value (20 years) Old monthly cost (11.25%) New monthly cost (11.75%) Change
R750 000 R7 869 R8 128 +R259
R800 000 R8 394 R8 670 +R276
R850 000 R8 919 R9 212 +R293
R900 000 R9 443 R9 753 +R310
R950 000 R9 968 R10 295 +R327
R1 000 000 R10 493 R10 837 +R344
R1 500 000 R15 739 R16 256 +R517
R2 000 000 R20 985 R21 674 +R689
R2 500 000 R26 231 R27 093 +R862
R3 000 000 R31 478 R32 511 +R1 032
R3 500 000 R36 724 R37 930 +R1 206
R4 000 000 R41 970 R43 348 +R1 378
R4 500 000 R47 217 R48 767 +R1 550
R5 000 000 R52 463 R54 185 +R1 722