On 28 May 2026, the MPC increased the policy rate to 7% as inflation accelerated and global energy risks worsened. SARB reported April inflation at 4.0% and lowered its near-term growth outlook amid higher uncertainty and reduced disposable income.
The practical property impact
A higher policy rate feeds through to prime-linked borrowing and can immediately increase repayments on variable-rate home loans, while also influencing buyer qualification and transaction demand.
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