All South Africans want for Christmas is no interest rate hike

0 The SARB has warned the public about a fraudulent WhatsApp group falsely claiming to offer daily stock recommendations from Governor Lesetja Kganyago. Image: Facebook @SaReserveBank Home » Business & Finance » All South Africans want for Christmas is no interest rate hike

South Africans could get some early Christmas relief if the South African Reserve Bank (SARB) leaves interest rates unchanged.

0 The SARB has warned the public about a fraudulent WhatsApp group falsely claiming to offer daily stock recommendations from Governor Lesetja Kganyago. Image: Facebook @SaReserveBank South Africans could get some early Christmas relief if the South African Reserve Bank (SARB) leaves interest rates unchanged – or announces an unexpected cut – at its final Monetary Policy Committee (MPC) meeting of 2026 on Thursday, 19 November.

At the time of publishing, the decision is still uncertain. Inflation risks have kept the possibility of another increase on the table, but temporary fuel tax relief and expectations that some price pressures will ease have strengthened the case for holding rates steady.

SARB Governor Lesetja Kganyago has said the bank’s modelling suggests current policy settings should bring inflation back towards its 3% target once the conflict in the Middle East ends.

The bank raised the repo rate by 25 basis points to 7.25% at its most recent meeting in September.

The prime lending rate is now 10.75%, increasing borrowing costs for households with variable-rate home loans and other debt.

The temporary fuel tax relief package announced by Finance Minister Enoch Godongwana in his recent medium-term budget has improved the near-term inflation outlook.

The relief is expected to ease pressure on motorists in November.

However, uncertainty around international oil prices and the rand means fuel costs could still push up transport, production and other business expenses.

The Reserve Bank has warned that it must prevent an initial price shock from spreading into broader inflation through wage-setting, expectations and business pricing.

If fuel prices stabilise and the impact of higher costs fades, inflation could move closer to the SARB’s target during 2027. That could reduce the need for another rate increase.

But the decision will depend on whether policymakers believe inflation is easing or whether price pressures risk becoming entrenched. The bank has said it will assess the data and risks at each meeting.

For borrowers, an unchanged rate would mean no additional increase in repayments from the November decision.

With the vast majority of South Africans currently drowning under financial pressure – with increases to medical aid tariffs and the like kicking in on 1 January 2027 – news of ‘no interest rate change’ will certainly be welcomed over a hike.

At the current prime lending rate of 10.75%, monthly repayments over 20 years assuming no deposit, are:

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