The repo rate has been raised by 75 basis points to 6.25% per year, effective from 23 September 2022. This means that the rate at which the SARB lends to your bank has risen from 5.50% to 6.25%.

For employers, the official interest rate applicable to payrolls will be 7.25%, effective from 1 October 2022.

The definition of “official interest rate” in the Seventh Schedule of the Income Tax Act means:

·        In the case of a loan which is denominated in the currency of the Republic, the South African repurchase (repo) rate + 100 basis points; or

·        In the case of a loan which is denominated in any other currency, the South African repurchase rate applicable in that currency + 100 basis points.