The South African Reserve Bank’s Monetary Policy Committee (MPC) has left the repo rate unchanged at 7%, keeping the prime lending rate at 10.5%.
Governor Lesetja Kganyago announced the decision on Thursday, citing persistent inflationary pressures. He noted that inflation expectations remain a key factor in the bank’s modelling, with slower adjustments posing risks to price stability.
At its previous meeting in July, the central bank cut the policy rate by 25 basis points and shifted its inflation target from the midpoint of 4.5% to the lower end of its 3–6% range. Kganyago said stabilising inflation closer to 3% would require lower long-term interest rates.
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