Repo rate vs prime rate: what's the difference? (10,75%)
Figures for the 2026/27 tax year. Prime rate checked 9 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
The repo rate is the rate at which the South African Reserve Bank lends to commercial banks. The prime rate is the rate banks use as their base for lending to you. Prime is always the repo rate plus 3,5 percentage points.
Today's rates
| Rate | Today | Since |
|---|---|---|
| Repo rate | 7,25% | 25 September 2026 |
| Prime lending rate | 10,75% | 25 September 2026 |
Who sets them
The Reserve Bank's Monetary Policy Committee decides the repo rate six times a year, usually in January, March, May, July, September and November. It raises the rate to slow inflation and cuts it to support the economy. When the repo rate moves, banks move prime by the same amount, usually within a day or two.
What a move means for you
Each 0,25 percentage point change in prime changes the repayment on a R 1 500 000 bond over 20 years by about R 254 a month. Since 31 January 2025, prime has moved 6 times. See the full prime rate history.
Most home loans, car finance and credit cards are linked to prime, so the change reaches your debit order from the next payment. Fixed-rate loans don't change until the fixed period ends.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
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