US EditionReserve Bank stalls on interest rate — but two cuts still expected in 2026
The South African Reserve Bank kept the repo rate at 6.75% amid moderate inflation, with a 4-2 vote and lowered inflation forecasts for 2026 to 3.3%, signaling possible cuts later.
- On Thursday, 29 January, the South African Reserve Bank kept the repo rate at 6.75%, with the six-person Monetary Policy Committee voting 4-2 against a 25 basis point cut, maintaining the prime lending rate at 10.5%.
- Amid rand strength and moderating price pressures, the committee held rates as inflation likely peaked at 3.6% in December, with inflation expectations for 2026 and 2027 lowered to 3.3% and 3.2%.
- The six-person Monetary Policy Committee met as scheduled on a Thursday, with Governor Lesetja Kganyago leading; the MPC last cut the repo by 25 basis points at its November 2025 meeting.
- The split vote raised near-term odds of easing, with the Quarterly Projection Model still pencilling in two 2026 cuts, while commercial banks keep the prime lending rate at 10.5%, leaving borrowers and savers unchanged.
- Food and electricity price risks could complicate the path to lower rates as the National Energy Regulator of South Africa's price correction may rise from R54 billion to R76 billion, while Lesetja Kganyago called the past year a `watershed year for the South African economy`.
13 Articles
13 Articles
Monetary authority said that inflation last year was 3.2%, near the 3% target, with progress towards the end of 2025 allocated to temporary factors
South Africa holds repo rate unchanged at 6.75 pct amid inflation, global risks
JOHANNESBURG, Jan. 29 (Xinhua) -- The South African Reserve Bank (SARB) on Thursday kept its benchmark repurchase rate unchanged at 6.75 percent, citing persistent inflation risks and heightened global uncertainty. Read full story
SARB keeps interest rate on hold
As was widely expected, the South African Reserve Bank elected to keep the repo rate unchanged when it announced its latest interest rate decision on Thursday, 29 January. The decision was not unanimous with two of the six-person Monetary Policy Committee favouring a 25 basis point cut, while the four others opted for keeping the rate on hold. The repo rate thus remained at 6.75%, keeping the prime lending rate at 10.5%. The announcement left in…
Unchanged repro rate expected to bring stability to residential property market
As interest rates remain unchanged, it is anticipated that it will bring short-term stability to South Africa’s property market (Image source: © 123rf [[www.123rf.com 123rf]])As interest rates remain unchanged, it is anticipated that it will bring short-term stability to South Africa’s property market, despite buyers and industry professionals hoping for a cut to improve affordability and boost activity. Read more...
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