The SARB has taken a ‘prudent approach,' said Governor Lesetja Kganyago in the decision to keep the repo rate unchanged at 6.75% and the prime lending rate at 10.25%.
This was not unexpected given the Middle East conflict, which has created geopolitical uncertainty and rising inflation risks from higher oil prices, and a weaker rand.
The residential real estate market has reacted:
Stephan Potgieter, CEO of BetterHome Group Mortgage Origination and BetterBond:
Homeowners may feel some reassurance following the Reserve Bank’s decision despite ongoing tensions in the Middle East and the potential impact on fuel prices and inflation. While this doesn’t bring immediate financial relief, it does offer some predictability as household costs continue to rise, including increases in electricity tariffs next month. While keeping the prime lending rate steady may not provide the relief homeowners had hoped for this month, it will support ongoing stability in the market, even amid persistent global uncertainty. We continue to encourage homeowners to budget prudently and, where possible, to pay more towards their monthly bond repayments. Holding the rate steady suggests a cautious stance by the Reserve Bank, and should inflation risks intensify, borrowing costs could still increase in the months ahead.
John Loos, independent economist
This is the 2nd consecutive unchanged rate decision. However, given the geopolitical uncertainty and the evidence that actual inflationary pressures are already "elevated," the SARB probably took the best option under the circumstances, i.e., putting any interest rate move on hold for the time being and perhaps taking something of a “wait-and-see” approach. In the meantime, the impact of this decision could lead to growth slowdowns in certain credit-dependent spending areas of the household sector economy, most notably durable consumer goods (which include motor vehicles), to a lesser degree semi-durable consumer goods, and home buying demand.
Leonard Kondowe, Rawson Property Group Finance
While the decision to hold rates offers short-term stability, it also reflects the broader pressures facing the economy. Stability is valuable in itself, as it gives buyers a clearer picture of what their repayments will look like and allows them to plan with more confidence, even if rates haven’t started coming down yet. That said, rising fuel prices, ongoing geopolitical tensions, and currency volatility continue to fuel inflation concerns, limiting the Reserve Bank’s room to introduce rate cuts in the near term. Lending appetites remain healthy despite economic pressure. Buyers with a strong financial profile, good credit record, and manageable debt are still able to secure favourable rates.
Adrian Goslett, CEO and Regional Director of REMAX Southern Africa.
Despite an unchanged interest rate, the property market continues to operate with caution. Buyers and sellers alike are navigating mixed signals, balancing improved affordability against concerns of future rate movements. While stability in rates is the best we can hope for now, that confidence will depend on clearer economic direction. The unchanged rate supports transactional activity, but strained momentum will require greater certainty around inflation and future rate decisions.
Rhys Dyer, CEO of the ooba Group
This cautious approach highlights a complex global environment that continues to outweigh positive domestic economic signals. However, given the magnitude of the situation globally, a rate hold is an expected outcome for the local property sector, which continues to thrive in a stable local environment. The residential property market continues to show resilience with national house price inflation accelerating in early 2026, and the upward momentum is further reflected in ooba Home Loans’ latest purchase price figures, with the average national purchase price reaching a record R1.75 million in February 2026 (a staggering 6.5% year-on-year increase). Dyer says the buoyancy of the market is being driven by a supportive lending environment, in which more banks are granting 100% (plus costs) home loans.
Neil Abernethy, spokesman for Tyson Properties
Concerns are that an extremely high fuel increase and resultant increases in food and service prices will put pressure on household disposable incomes, but with rates remaining unchanged during particularly uncertain times, it is a positive sign. Abernathy expects the Reserve Bank to hold off on cuts until things begin to stabilise, with further cuts unlikely until late in the year at the earliest. Like the Reserve Bank, he expects the property market to remain resilient. Buyers on the lookout for the right property, in the perfect location and at a good price, may continue to invest.
Greg Dart, director of the High Street Auction Company
The only certainty is uncertainty at the moment, especially as the country braces for one of the highest ever fuel price hikes. The risk of a global recession and further fallout from the conflict in the Middle East remain, but there is good reason to remain optimistic. Once South Africa has ridden out the perfect storm of a rocketing oil price and a weakening rand, the Reserve Bank will resume repo rate cuts, striving to maintain economic recovery that became evident in late 2025. Supply chain constraints that are likely to delay or push the prices of imports may even boost local production, aiding recovery. The challenge is to remain patient!
Samuel Seeff, chairman of the Seeff Property Group
While the decision was appropriate and expected, the outlook must remain clear for at least two more cuts this year. The Bank must guard against any premature or reactionary rate hikes triggered by the temporary oil price spike and petrol volatility caused by the Middle Eastern war. This geopolitical instability must be viewed as a temporary glitch rather than a reason to increase the cost of debt. The case for further easing is supported by exceptionally strong underlying fundamentals that the Bank must not ignore. Inflation has plummeted to a record low of 3.0% for February (down from 3.5% in January), and the Rand has also remained resilient. Given these favourable indicators, the Bank has already been too cautious and missed a golden opportunity to cut rates in January, which could have provided a buffer.
Dr. Andrew Golding, chief executive of the Pam Golding Property group:
Keeping the repo rate steady provides a measure of stability for households with existing mortgages and aspirant home buyers seeking credit, particularly in the face of surging fuel prices and increased municipal tariffs. Heightened geopolitical tensions and disruptions to global shipping routes are injecting some uncertainty into the economic outlook, with the duration of the disruptions emerging as the key risk factor for inflation, interest rates, and South Africa’s housing market. Higher living costs, driven by fuel, transport, and food, may affect existing homeowners’ ability to service mortgages. Encouragingly, banks have continued to play a supportive role, underpinning the market with competitively priced loans and relatively strong approval rates, helping sustain transactional activity.
Fritz Swanepoel, CEO of Leapfrog Property Group
This decision reflects a cautious but pragmatic response to ongoing global volatility. While many were hoping for a further cut, stability at this level provides something the property market values highly: predictability. In an environment where fuel and electricity costs are set to rise, certainty becomes more important than marginal rate relief. It allows both buyers and homeowners to plan with confidence, and confidence is what ultimately drives property markets forward. Importantly, we must not lose sight of how far conditions have improved. Compared to 18 months ago, lending conditions remain supportive, banks are still competing, and well-priced property continues to move.
