The Repo Rate Went Up Again. Here Is What It Means for Your Pocket
Nothing around you looks different. And yet, in the background, something did change. On the 23rd of September 2026, the South African Reserve Bank nudged interest rates up by 25 basis points, taking the repo rate to 7.25%. Just a small number moving on a page somewhere in Pretoria. But that small number touches almost every loan in the country.
Let’s unpack what the repo rate change means for the money leaving your account every month.
What Is the Repo Rate?
The repo rate is the interest the South African Reserve Bank charges when it lends money to our banks. When it becomes more expensive for the banks to borrow, they pass that cost on to you.
They do this through the prime lending rate. Prime usually sits 3.5% above the repo rate, and most home loans, car loans and many personal loans are linked to it.
After this latest move:
- Repo rate: 7.25%, up from 7%
- Prime lending rate: 10.75%, up from 10.5%
Why Did the Reserve Bank Do This?
The short version is that prices are creeping up and the Reserve Bank is trying to keep them from spiralling. Inflation ticked up to 4.4% in August, driven largely by fuel and transport costs. Add in ongoing tension in the Middle East pushing oil prices up , and the Reserve Bank decided it was time to act, hoping to keep inflation from drifting too far from its target. This is the second hike this year, following a similar increase in May.
How Does The Repo Rate Change Affect Personal Loans?
If your personal loan has a variable interest rate linked to prime, your repayment will likely go up. Your lender should let you know your new instalment, usually from your next billing cycle. It is worth checking your next statement so there are no surprises.
If your loan has a fixed rate, your repayment stays the same for the agreed period.
A Few Simple Steps for Now
Review your budget after any interest rate change. Look at your current repayments, check what money is left after expenses, and avoid taking on new credit without knowing the full cost.
- Check your latest statements for any new repayment amounts.
- Update your monthly budget to include the change.
- Pay off expensive debt first where you can.
Is This the Last Hike?
Nobody can say for sure, but there is some hopeful news. Some economists believe this could be the peak of the current hiking cycle. A lot will depend on where fuel prices and inflation go in the coming months.
What About Atlas Finance Loans?
Atlas Finance’s short-term loans work differently. They are priced on a monthly interest model regulated by the National Credit Act, at 5% per month on your first loan of the calendar year and 3% per month on any loans after that.
That means they are not directly linked to prime in the same way as home or car loans. Your full repayment, including interest and fees, is shown to you upfront before you accept the loan, so you know exactly what you are signing up for.
We Are Here When You Need Us
Repo rate changes can make budgets feel tight, but clear information helps you stay in control. If you need a helping hand to cover an unexpected expense, Atlas Finance offers short term loans from R500 to R20,000 with clear costs and no hidden fees.
Apply online in a few easy steps at atlasfinance.co.za/apply-loan and see how we can help.
