South Africa central bank plans to scrap prime lending rate by next year

The South African Reserve Bank aims to replace the prime lending rate with its main policy rate starting in 2027. This move intends to simplify loan pricing.

The South African Reserve Bank (SARB) has released a discussion paper proposing a significant shift in the country's financial framework by replacing the prime lending rate with its policy, or repo, rate as the primary reference point for financial contracts. This proposal, aimed at the South African banking sector, seeks to modernize how interest rates are applied to loans and other financial products across South Africa ZAZA.
FILE PHOTO: South African Reserve Bank Governor Lesetja Kganyago gestures during an interview with Reuters in Sandton, South Africa, October 30, 2025. REUTERS/Siphiwe Sibeko/File Photo
FILE PHOTO: South African Reserve Bank Governor Lesetja Kganyago gestures during an interview with Reuters in Sandton, South Africa, October 30, 2025. REUTERS/Siphiwe Sibeko/File Photo
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