US EditionSouth Africa keeps policy rate on hold as Iran war seen pushing up inflation
The repo rate stays at 6.75% as SARB cites over 40% oil price surge and currency weakness amid geopolitical tensions that risk pushing inflation higher.
- On Thursday, March 26, 2026, the South African Reserve Bank maintained its benchmark repo rate at 6.75%, citing heightened global uncertainty triggered by the ongoing Middle East conflict.
- Escalating conflict involving the United States, Israel, and Iran has sent shockwaves through global energy markets. SARB Governor Lesetja Kganyago described this as a classic supply shock where energy prices rise sharply while economic demand weakens simultaneously.
- Brent crude prices have surged more than 40% since late February, climbing above $100 per barrel. The Monetary Policy Committee adopted a wait-and-watch strategy, aligning with global central banks to assess evolving risks.
- Borrowers hoping for lower interest rates face prolonged delays as inflation is projected to rise to around 4% in the near term. Fuel inflation is expected to exceed 18% in the second quarter, intensifying household pressure.
- The SARB outlined two risk scenarios: a moderate shock lasting two months could trigger one rate hike, while a severe shock exceeding one year could require multiple increases. Kganyago stressed that monetary policy must remain data-driven to prevent temporary shocks from becoming permanent inflation.
15 Articles
15 Articles
Directors highlighted the conflict in the Middle East, with high risk for inflation, while projections for growth remained unchanged
SARB keeps interest rates on hold in South Africa
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) elected to keep interest rates on hold on Thursday. The news will come as little comfort to those South Africa’s currently drowning in debt. SARB Governor Lesetja Kganyago confirmed the decision was unanimous. The repo rate thus remains at 6.75% and the prime lending rate (charged to consumers) stays at 10.25%. The latest figures from Stats SA showed consumer inflation ease…
Reserve Bank holds repo rate as fuel price shock looms
It was inevitable that the South African Reserve Bank would elect to keep the repo rate unchanged at 6.75% at Thursday's Monetary Policy Committee (MPC) meeting, extending its pause in monetary easing. The decision reflects a cautious move as policymakers weigh the potential inflationary impact of a looming energy crisis, and balance the need to support growth.
Reserve Bank holds repo rate, adopts wait-and-see stance on Middle East conflict
By Thebe Mabanga The Reserve Bank’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.75% in a unanimous decision, opting for a wait-and-see approach amid the war in Iran and neighbouring states in the Middle East. “Since our last meeting, the key event has been the outbreak of conflict in the Middle East,” said Governor Lesetja Kganyago when presenting the MPC statement. “Prices for commodities like oil, gas and fertiliser have …
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