Interest rate cuts offer some relief but South Africans still struggling, say debt experts

A FULL percentage point and a quarter in interest rate cuts over the past year have eased financial pressure on South Africans — but not enough to make a meaningful difference, according to leading debt experts.

- YOGASHEN PILLAY

DEBT experts said that 125 basis interest rate cuts over the last year by the South African Reserve Bank have brought some relief to consumers but not enough to make a huge impact.

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The South African Reserve Bank (Sarb) has reduced the repo rate by a cumulative 125 basis points since August 2024, bringing it down from 11.75% to 10.5%. While this marks a gradual easing of monetary policy after years of high borrowing costs, analysts say the relief has been offset by the soaring cost of living.

Neil Roets, the founder and CEO of Debt Rescue, said that while the rate cuts were welcome, many consumers are still under severe financial strain.

“While this 125 basis point reduction has provided some relief on paper, the reality is that most South Africans are not feeling any meaningful improvement in their financial situation.