South Africa: Official rate of interest (low interest loans)

South Africa: Official rate of interest (low interest loans)

The South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has announced an increase in the repurchase rate by 75 basis points. The increase means the repo rate would be 5.50% per year as from the 22 July 2022.

The “official rate of interest” as defined in section 1(1) of the Act is linked to the repo rate plus one per cent. The official rate is adjusted at the beginning of the month following the month during which the SARB changes the repo rate.

The SARS official rate of interest will increase from 5.75% to 6.50% effective 1 August 2022.