The South African Reserve Bank's (SARB) monetary policy committee (MPC) is scheduled to convene on Thursday, November 21, for its final meeting of the year. Analysts predict a potential interest rate cut, providing relief for many South Africans burdened by debt.
Inflation has recently dropped to its lowest level in four years, creating favorable conditions for a reduction in interest rates. If enacted, this cut could lower monthly bond repayments, benefiting homeowners and first-time property buyers.
In its previous meeting in late September, the MPC reduced the interest rate by 25 basis points, bringing the repo rate to 8% and the prime lending rate to 11.50%. This move followed a series of increases totaling 475 basis points since 2021, which had strained financial conditions for many citizens.
A 25 basis point cut on Thursday could provide significant savings over time, though it remains uncertain if further adjustments will follow.