SARB raises repo rate 25bp to 7.25%, lifting prime to 10.75%

On 23 September 2026 the South African Reserve Bank’s Monetary Policy Committee unanimously raised the benchmark repo rate by 25 basis points to 7.25%, moving the prime lending rate to 10.75%. The decision responds to higher fuel prices and global supply shocks and shifts short-term monetary policy tighter.

A 25bp repo increase mechanically raises short-term borrowing costs for the sovereign and floating-rate corporates, increasing South Africa’s domestic debt-service burden while making ZAR assets more attractive to carry-seeking investors. The move should support the rand versus peers if global risk premia are unchanged, but it also tightens domestic financial conditions and may weigh on growth and consumption.

SARB’s next MPC meeting and upcoming CPI and oil-price prints over the coming months.