South Africa Keeps Key Interest Rate Unchanged at 7%

The South African Reserve Bank left its key repo rate unchanged at 7% on September 18, 2025, as widely anticipated. The decision was not unanimous, with four members voting to keep rates unchanged and two favoring a 25-basis-point cut. Since September last year, rates have been reduced by 125 basis points, and policymakers said they are pausing to assess the impact on the economy, evolving expectations, and inflation risks. They noted that headline inflation has picked up in recent months, broadly as expected, and is anticipated to rise over the next few months, peaking around 4% before easing back to 3%, averaging 3.6% in 2026 and 3.1% in 2027.