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South Africa keeps policy rate on hold as Iran war seen pushing up inflation
The repo rate stays at 6.75% as SARB cites over 40% oil price surge and currency weakness amid geopolitical tensions that risk pushing inflation higher.
- On Thursday, March 26, 2026, the South African Reserve Bank maintained its benchmark repo rate at 6.75%, citing heightened global uncertainty triggered by the ongoing Middle East conflict.
- Escalating conflict involving the United States, Israel, and Iran has sent shockwaves through global energy markets. SARB Governor Lesetja Kganyago described this as a classic supply shock where energy prices rise sharply while economic demand weakens simultaneously.
- Brent crude prices have surged more than 40% since late February, climbing above $100 per barrel. The Monetary Policy Committee adopted a wait-and-watch strategy, aligning with global central banks to assess evolving risks.
- Borrowers hoping for lower interest rates face prolonged delays as inflation is projected to rise to around 4% in the near term. Fuel inflation is expected to exceed 18% in the second quarter, intensifying household pressure.
- The SARB outlined two risk scenarios: a moderate shock lasting two months could trigger one rate hike, while a severe shock exceeding one year could require multiple increases. Kganyago stressed that monetary policy must remain data-driven to prevent temporary shocks from becoming permanent inflation.
18 Articles
18 Articles
South Africa holds rates, pushes back cuts
The NewsSouth Africa held interest rates steady and pushed back the prospect of cuts as the Iran war threatens to interrupt a fragile recovery in Africa’s biggest economy, which had seen an investment surge in recent months after a decade blighted by low growth.The South African Reserve Bank’s monetary policy committee, meeting for the first time since the US and Israel attacked Iran, voted unanimously to keep its main interest rate unchanged at…
Directors highlighted the conflict in the Middle East, with high risk for inflation, while projections for growth remained unchanged
SARB keeps interest rates on hold in South Africa
The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) elected to keep interest rates on hold on Thursday. The news will come as little comfort to those South Africa’s currently drowning in debt. SARB Governor Lesetja Kganyago confirmed the decision was unanimous. The repo rate thus remains at 6.75% and the prime lending rate (charged to consumers) stays at 10.25%. The latest figures from Stats SA showed consumer inflation ease…
The Governor's prayer: Kganyago holds steady while the world burns
A performative calm prevailed in the wood-paneled South African Reserve Bank (SARB) press room on 26 March 2026. Governor of the South African Reserve Bank, Lesetja Kganyago, calmly announced the repo rate would hold at 6.75 per cent, a unanimous decision presented as prudent stability. Outside those walls, the world was on fire. Brent crude had surged past R1,965 per barrel (approximately $114.81) after the US-Israel-Iran conflict escalated. Th…
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