This afternoon, the Monetary Policy Committee of the South African Reserve Bank (‘SARB’) convened its fourth meeting of 2026. In accordance with some economists’ predictions, and despite muted expectations of an increase, SARB declined to adjust the repo rate. Accordingly, the prime lending rate of commercial banks remains 10.5%.
Against the backdrop of continued geopolitical tensions, global oil price instability, and rising consumer inflation, which hit 5% in June, the decision was not unanimous – with two of the MPC’s six members favouring a 0.25% increase. The hold will be welcomed by the property industry, prospective purchasers, and homeowners with bonded properties, who may have anticipated a second consecutive repo rate increase.
Noting an uncertain economic outlook and downside risks to growth, SARB indicated that existing economic data suggests containment – at least for South Africa – and accordingly forecasts a shift towards economic recovery later this year.
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