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SARB interest rate announcement prediction: What to expect

The South African Reserve Bank’s (SARB’s) Monetary Policy Committee (MPC) will meet for the third time in 2024 on Thursday, 30 May.

The MPC meets every second month.

As a reminder, in their second gathering of the year in late March, the central bank elected to keep the repo rate at 8.25% while the current prime lending rate stayed at 11.75%.

It was the fifth consecutive meeting that the interest rates had remained on hold.

Reserve Bank governor Lesetja Kganyago confirmed at the time that the vote was unanimous among the five-member committee.

Meanwhile, those experts in the know predict the SARB will keep the interest rate on hold once again this week.

While that would be ‘good’ news for those fearful of a hike, it represents bad news for those desperately seeking a cut.

Any cut has been pushed back to later in 2024 or even into 2025.

Kganyago recently told Bloomberg that the SARB won’t succumb to election pressures as the country prepares to vote in the general elections on Wednesday, 29 May.

The South African website will publish the outcome of this week’s SARB announcement as soon as it’s announced at around 15:00.

SARB MPC MEETING DATES FOR 2024

Month Date
January 25 January
March 27 March
May 30 May
July 18 July
September 19 September
November 21 November

Reminder of monthly bond repayments

The table below shows the current monthly bond repayments on various bond values assuming no deposit and that repayments are at prime (11.75%):

Bond value (20 years) Monthly cost
R750 000 R8 128
R800 000 R8 670
R850 000 R9 212
R900 000 R9 753
R950 000 R10 295
R1 000 000 R10 837
R1 500 000 R16 256
R2 000 000 R21 674
R2 500 000 R27 093
R3 000 000 R32 511
R3 500 000 R37 930
R4 000 000 R43 348
R4 500 000 R48 767
R5 000 000 R54 185

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