Indebted South Africans will avoid an immediate increase in monthly repayments after the South African Reserve Bank kept interest rates unchanged at its July Monetary Policy Committee meeting yesterday.
The MPC voted four to two to keep the repo rate at 7.00% and the prime lending rate at 10.50%. Two members supported a 25-basis-point increase.
Sebastien Alexanderson, head of National Debt Advisors, said the decision provides welcome stability for consumers with variable-rate debt.
“For households with home loans, vehicle finance, credit cards and other prime-linked debt, repayments will remain unchanged for now,” Alexanderson said.
“This gives consumers greater certainty when planning their budgets and an opportunity to reduce existing debt where possible.”
The decision came amid global conflict, disruption to the Strait of Hormuz and higher oil prices. South Africa’s annual inflation rate rose to 5.0% in June, driven largely by fuel and transport costs, while inflation expectations remain above the Reserve Bank’s 3% target.
“Higher fuel costs affect consumers directly through transport expenses and indirectly through the prices of food, goods and services,” Alexanderson said.
Although inflation risks remain, the Reserve Bank noted that other areas of the economy have been more contained and growth has performed better than expected.
Alexanderson said households should use the rate hold to review spending, avoid unnecessary new debt and direct any available surplus towards high-interest accounts such as credit cards and personal loans.
“Small, consistent steps can make a meaningful difference,” he said. “Paying more than the minimum amount where possible and reducing non-essential expenses can improve a household’s financial position over time.”
Consumers struggling to meet repayments should contact their credit providers or seek advice from a registered debt counsellor early.
“Seeking guidance can help consumers understand their options and put a manageable plan in place,” Alexanderson said.
The next interest-rate announcement is scheduled for Wednesday, 23 September 2026.
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Author: Omega Ngema from Financial Wealth Holdings on behalf of National Debt Advisors.
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Vickie Remoe: Vickie Remoe is a South African journalist who has worked for the SABC and the Mail & Guardian. She is known
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