SA interest rates today: what a rise would mean for your bond

South Africa’s Reserve Bank decides on interest rates today, and most economists expect a rise of a quarter of a percent, taking the main rate to 7.25%. In July the bank held rates when many expected a move, so nothing is certain until the announcement this afternoon.

If rates do go up, the prime rate banks use for home loans and car finance would move to 10.75%, so monthly repayments would rise, while savings would earn a little more. Higher rates often support the rand, and a surprise hold could weaken it, so the currency is the first place the decision tends to show.

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