An expected pause in interest rate cuts by the SA Reserve Bank

SOUTH AFRICA - Report 26 Mar 2026 by Iraj Abedian

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) announced that it is leaving the benchmark interest rate unchanged following another halt in January 2026. As we have highlighted in recent reports, the likelihood of the Reserve Bank cutting rates has declined considerably, despite the relatively benign inflation backdrop. The repurchase (repo) rate, hence, remains at 6.75%, and the prime lending rate at 10%.

While headline inflation has remained close to the Bank’s preferred 3% anchor, the emergence of significant upside risks, particularly stemming from the escalating Iran conflict, has materially altered the policy outlook. In this context, the South African Reserve Bank opted to hold rates unchanged, prioritizing its inflation-targeting mandate and the need to anchor expectations.

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