SARB pauses hiking cycle, repo rate remains at 8.25%
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GUEST - Nicky Weimar - Nedbank's chief economist
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) voted to pause interest rate hikes for the first time since the current hiking cycle started in November 2021. This decision means the repo rate will remain at 8.25% while the prime lending rate stands at 11.75%. The decision was not unanimous, as three members of the MPC preferred to keep the rate on hold, while the other two preferred a 25 basis point hike.
“Headline inflation returned to the upper end of the inflation target range in June and is forecast to sustainably revert to the mid-point of the target range by the third quarter of 2025,” said SARB governor Lesetja Kganyago today.
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) voted to pause interest rate hikes for the first time since the current hiking cycle started in November 2021. This decision means the repo rate will remain at 8.25% while the prime lending rate stands at 11.75%. The decision was not unanimous, as three members of the MPC preferred to keep the rate on hold, while the other two preferred a 25 basis point hike.
“Headline inflation returned to the upper end of the inflation target range in June and is forecast to sustainably revert to the mid-point of the target range by the third quarter of 2025,” said SARB governor Lesetja Kganyago today.
