Good News for SA Business: Repo Rate Cut to 6.75% Brings Relief

South African businesses and consumers can finally breathe a sigh of relief. In the final Monetary Policy Committee (MPC) meeting of 2025, the South African Reserve Bank (SARB) announced a reduction in the repo rate by 25 basis points, bringing it down to 6.75%.

This decision, driven by an improved inflation outlook, lowers the prime lending rate to 10.25%, signaling a positive shift for the economy as we head into the festive season and the new year.

But what does this mean for your business, your debt, and your payroll? Let’s break it down.

What is the Repo Rate?

For those new to the term, the repo rate (repurchase rate) is the interest rate at which the Reserve Bank lends money to commercial banks. When this rate goes down, banks lower their lending rates to consumers and businesses.

The Numbers: November 2025 Update

• New Repo Rate: 6.75% (down from 7.00%)
• New Prime Lending Rate: 10.25%
• Inflation Context: With October inflation sitting at 3.6%—close to the Reserve Bank’s updated 3% target—the MPC felt confident enough to ease the pressure on the economy.

How This Impacts Your Business

1. Improved Cash Flow

A lower prime rate means the interest on your business overdrafts, loans, and credit lines will decrease. For Small to Medium Enterprises (SMEs) operating on tight margins, this frees up crucial working capital that was previously tied up in debt servicing.

2. Cheaper Capital for Growth

If you’ve been holding off on purchasing new equipment or expanding your operations due to high borrowing costs, 2026 might be the year to move forward. Cheaper credit makes capital investments more attractive and sustainable.

3. Payroll and Employee Wellbeing

The rate cut isn’t just good for the company bank account; it’s a win for your employees too. Most of your workforce likely has debt—whether it’s a bond, vehicle finance, or credit cards. A reduction in interest rates increases their disposable income, alleviating financial stress.

• Tip: Financial stress is a major productivity killer. This relief can lead to a more focused and engaged workforce.

Optimize Your Savings with Panda Payroll

While the repo rate cut saves you money on interest, Panda Payroll saves you money on administration.

In a recovering economic climate, efficiency is king. Why spend thousands on manual bookkeeping or expensive, outdated systems when you can streamline your entire payroll process?

• Cut Costs: Our clients save up to 70% on payroll costs.
• Stay Compliant: Fully SARS-compliant (EMP201/EMP501) and automated.
• Focus on Growth: Spend less time on admin and more time using that extra capital to grow your business.

Final Thoughts

The cut to 6.75% is a welcome “financial gift” to end 2025. As we look toward 2026, ensure your business is positioned to take full advantage of the improving economic conditions by pairing lower debt costs with smarter operational tools.

Ready to streamline your business finances? Sign up for a 30-day free trial with Panda Payroll today and experience the future of affordable, automated payroll.