What Is Prime Interest Rate?
A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to customers with good credit.
Some variable interest rates may be expressed as a percentage above or below the prime rate.
What Is Prime Interest Rate In South Africa?
The current prime lending rate is 11.75%, based on a repo rate of 8.25% as determined by the South African Reserve Bank.
What is the highest prime interest rate in South Africa?
This stayed constant from the previous number of 11.750 % pa for July 2023. South Africa Prime Lending Rate data is updated monthly,
averaging 10.500 % pa from Jan 2000 to Aug 2023, with 284 observations. The data reached an all-time high of 17.000 % pa in May 2003 and a record low of 7.000 % pa in Oct 2021.
Who determines the prime rate in South Africa?
The SARB (South African Reserve Bank) controls the repo rate (repurchase rate); the rate at which SARB lends to South African banks.
This in turn determines the prime interest rate, and then the rate at which banks will lend to their customers.