Say goodbye to prime interest rates in South Africa

• The South African Reserve Bank (SARB) plans to stop using the prime interest rate and instead use its own repo rate to price consumer loans.
• The SARB's proposal aims to increase transparency between banks and consumers by quoting rates based on the repo rate, which is currently set at 7.0%, and would accurately reflect the margin banks earn on their products.
• The shift away from prime interest rates is expected to take another year, with further details likely to be announced in 2027, and the SARB is also set to switch from JIBAR to ZARONIA later this year, which is seen as a more reliable and transparent reference rate.