Interest Rates & Inflation
SARB policy, prime lending, and CPI — what drives bonds, rents, and business costs.
Repo rate
7.0%
CPI period: June 2026
Prime lending rate
10.5%
Most home loans priced off prime
Headline CPI
5.0%
Inflation target band 3–6%
Within SARB band
Bond on R1.5m home
R14,976
Est. 20yr at prime — illustrative
Prime − repo spread
3.50pp
Bank margin on policy rate
Real borrowing rate
5.5%
Prime minus headline CPI
Moderate real rate
CPI vs target midpoint
0.5pp
Distance from 4.5% midpoint
Hot inflation category
Food & non-alcoholic beverages
6.8% annual change
Food inflation
6.8%
Largest household budget pressure
Transport inflation
3.1%
Fuel and mobility costs
Housing & utilities
4.2%
Rent, water, and electricity costs
Repo change (quarter)
+0.00pp
Policy rate move since prior quarter
Repo rate history (quarterly)
CPI by category
Headline CPI trend
Monthly bond repayment vs home price
At prime 10.5% over 20 years