The Reserve Bank raised the repo rate by 25 basis points to 7.25% on 23 September 2026, taking prime to 10.75% from 25 September. The vote was unanimous, and it was the second hike this year after a rise in May and a hold in July.
Why rates went up
The Bank is worried about rising fuel prices. Governor Lesetja Kganyago warned that inflation could pass 5% late in 2026 before easing, and the Bank only expects cuts once inflation heads back towards 3%. The last rate decision of the year is in November.
What it costs you
On a R1 million, 20-year bond, the monthly repayment rises from about R9,984 to about R10,152, roughly R168 more a month, based on our own calculation.
What it means if you are selling
House prices are still rising, just more slowly. The FNB House Price Index peaked at 6.1% in March and April, eased to 5.1% in July, and FNB expects about 4% by year-end. FNB does not expect prices to fall, because there is little stock for sale.
Johannesburg was the country's strongest market in the first half of 2026, with 10.1% price growth.
The catch is that buyers now have more time and more bargaining power. Overpricing costs you weeks on the market, and a price cut later costs more than a realistic price at the start.
Do this now
- Run your numbers on our bond repayment calculator.
- Ask your bank whether fixing part of your rate makes sense for you.
- Thinking of selling? Check recent sales in your suburb in our area profiles.
- Buying? Set up property email alerts to see new stock first.
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- Property management in Gauteng: one trusted partner for better-managed communities
- Coming next week: what the rate hike means for landlords and tenants. Subscribe to our newsletter so you don't miss it.
All posts are general information, not legal or financial advice.
