SA Reserve Bank keeps repo rate unchanged at 7%

Zuko Komisa

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has voted to keep the repo rate unchanged at 7%, with the prime lending rate remaining at 10.5%.

The decision was announced by SARB Governor Lesetja Kganyago following the committee’s meeting.

The MPC decided to keep the policy rate unchanged, at 7%. #SARBMPCSEP25 pic.twitter.com/UbyEkxBwbs

— SA Reserve Bank (@SAReserveBank) September 18, 2025

Key Takeaways

Rates on Hold: Four MPC members preferred to keep the rate steady, while two voted for a 25-basis point cut. The committee wants to assess the impact of previous rate reductions before making further changes.
Economic Growth: The governor noted that the country’s Gross Domestic Product (GDP) grew by 0.8% in the second quarter, leading the bank to increase its annual growth forecast from 0.9% to 1.2%.
Inflation Outlook: The MPC expects headline inflation, which was 3.3% in August, to rise and peak at around 4% in the coming months. This is partly due to recent electricity price increases.
Future Outlook: The SARB’s Quarterly Projection Model suggests a gradual easing of rates as inflation moves towards the lower end of its 3% to 6% target range. The governor emphasised that future decisions will be made on a meeting-by-meeting basis.