Why did the South African Reserve Bank maintain its repo rate?

The SARB maintained its main repo rate at 6.75% to balance steady inflation, a stronger rand, and low oil prices against global geopolitical uncertainty.

What is the current inflation situation in South Africa?

Headline inflation was 3.6% in December, and averaged 3.2% for 2025, which is a 21-year low.

How has the South African rand performed recently?

The South African rand has surged 17% against the US dollar over the last year due to rising safe-haven asset prices amid geopolitical tensions.

Home / Business and Economy / SARB Holds Rates Steady Amidst Shifting Economic Winds

SARB Holds Rates Steady Amidst Shifting Economic Winds

31 Jan

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Summary

The main repo rate remains at 6.75%, pausing a cutting cycle started in late 2024.
Headline inflation was 3.6% in December, averaging 3.2% for 2025, a 21-year low.
The rand strengthened by 17% against the USD due to rising safe-haven asset prices.

SARB Holds Rates Steady Amidst Shifting Economic Winds

The South African Reserve Bank (SARB) decided to maintain its main repo rate at 6.75% on Thursday. This move pauses the rate-cutting cycle that commenced in September 2024, after rates were reduced from a 15-year high of 8.25%.

SARB Governor Lesetja Kganyago noted that economic growth appears steadier, with domestic household consumption increasing by over 3% in 2025. This stability is occurring amidst global geopolitical uncertainty, persistent low oil prices, and a strengthening rand.

Inflation figures show headline inflation at 3.6% in December, slightly up from 3.5% in November. For the entirety of 2025, inflation averaged 3.2%, marking a 21-year low. The SARB's target remains 3%, with a tolerance band of plus or minus one percentage point.