The South African Reserve Bank starts the year by holding rates steady

SOUTH AFRICA - Report 29 Jan 2026 by Iraj Abedian

Having convened for its first meeting of 2026 this week, the South African Reserve Bank’s Monetary Policy Committee (MPC) announced its interest rate decision today. Mostly in line with market expectations, the MPC voted to keep the benchmark interest rate unchanged at 6.75%. As such, the prime lending rate also remains at 10%.

The decision is consistent with the Reserve Bank’s price stability mandate and reflects prevailing inflation dynamics. Headline inflation edged up modestly from 3.5% in November 2025 to 3.6% in December, placing it 0.6 percentage points above the Bank’s new 3% target, but still comfortably within the tolerance band of ±1%. By keeping policy rates unchanged, the Reserve Bank is also likely reinforcing its commitment to the revised target, thereby helping to anchor inflation expectations and limit the risk of second-round effects.

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