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28.05.202613:00:00UTC+00South Africa’s Prime Rate Rises to 10.50% in May, Marking First Hike Since March 2026

South Africa’s prime lending rate has been raised to 10.50% in May 2026, up from 10.25% previously, marking the first increase since March 2026. The move, reflected in updated data as of 28 May 2026, signals a tightening in borrowing conditions for consumers and businesses across the country.

The prime rate had held at 10.25% since March 2026 before this latest adjustment. The 25-basis-point rise means higher costs for variable-rate loans, including mortgages, personal loans and some business credit facilities, potentially weighing on already stretched household and corporate budgets.

With the new 10.50% level now in effect, attention will turn to how the increase filters through to credit demand and investment decisions in the coming months, as households and companies reassess financing plans in a higher-rate environment.

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