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South Africa Holds Repo Rate at 6.75%, Inflation Stabilizes

1/30/2026

48 7 Full Breakdown

Summary

Story summary

South African Reserve Bank (SARB) kept the repo rate at 6.75% after January 29, 2026 Monetary Policy Committee meeting.
Governor Lesetja Kganyago of the SARB said inflation has peaked and is expected to remain under control.
Two Monetary Policy Committee (MPC) members favored a 25-basis-point cut, four preferred to hold.
The bank trimmed 2026 inflation to 3.3% and set a 3% target.
The move is positive for consumers amid uncertainty.

History

Historical Context

In 1996, the South African Reserve Bank implemented an inflation targeting framework to stabilize prices, setting a consistent target of 3% to 6%. By 2026, the target is set at 3%. Governor Lesetja Kganyago's recent announcement of a 6.75% repo rate reflects ongoing efforts to manage inflation, projected at 3.3%, amid economic uncertainty, emphasizing the bank's commitment to consumer stability.

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Story summary

South African Reserve Bank (SARB) kept the repo rate at 6.75% after January 29, 2026 Monetary Policy Committee meeting.
Governor Lesetja Kganyago of the SARB said inflation has peaked and is expected to remain under control.
Two Monetary Policy Committee (MPC) members favored a 25-basis-point cut, four preferred to hold.
The bank trimmed 2026 inflation to 3.3% and set a 3% target.
The move is positive for consumers amid uncertainty.

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