South Africa: Reserve Bank Leaves Interest Rates Unchanged
The committee held borrowing costs steady as weak growth and easing oil prices reduced pressure on the inflation outlook, while two members favored a hike.
- On Thursday, July 23, 2026, the South African Reserve Bank maintained the repo rate at 7.0% and prime lending rate at 10.5%, balancing weak economic growth against moderated inflation risks.
- Four MPC members supported maintaining the policy rate while two favored a 25-basis-point increase, as the committee lowered its 2026 inflation forecast to 4.0% from 4.4% and lifted growth to 1.4% from 1.2%.
- Headline inflation jumped to 5.0% in June 2026, driven by fuel and transport costs, according to Andre Cilliers, currency strategist at TreasuryONE, keeping inflation above the central bank's preferred 3% target.
- Adrian Goslett, chief executive officer of ReMax Southern Africa, noted the decision provides short-term stability, while Samuel Seeff, chairman of Seeff Property group, said it avoids further economic shocks.
- Elna Moolman, head of South Africa Macroeconomic Research at Standard Bank, suggested this could mark the end of the hiking cycle, though Leonard Kondowe of Rawson Finance noted rate cuts may open later if fuel prices soften.
19 Articles
19 Articles
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