The South African Reserve Bank (SARB) has kept its benchmark repo rate unchanged at 6.75%, opting to pause further easing as it evaluates the effects of recent monetary policy moves on inflation and growth. The decision was announced Thursday in Pretoria and reported by Reuters.
Governor Lesetja Kganyago said the Monetary Policy Committee (MPC) had chosen to “maintain a cautious stance” after two consecutive rate cuts earlier this year. He noted that while inflation has moderated, global financial uncertainty and domestic fiscal risks continue to weigh on the outlook, details of which were carried by Bloomberg.
Analysts told Business Day that the pause reflects SARB’s effort to strike a balance between supporting growth in a sluggish economy and maintaining price stability. South Africa has been grappling with muted consumer demand, persistent power shortages, and high unemployment, challenges that could limit the effectiveness of monetary stimulus.
The central bank reaffirmed its 2025 inflation target of 4.5% and projected modest growth recovery, but warned that geopolitical tensions and potential capital outflows remain significant risks.
The next rate-setting meeting is scheduled for November, when policymakers are expected to revisit the outlook based on updated inflation and GDP data.
