Business—29 Jan 2026

No interest rate changes in South Africa

South Africa’s central bank kept its main lending rate unchanged at 6.75% on Thursday, saying it wanted to see inflation expectations fall further and citing potential price pressures including electricity tariffs.

The majority of economists polled by Reuters had expected no change in the repo rate.

Central bank Governor Lesetja Kganyago told a press conference that four members of the bank’s Monetary Policy Committee (MPC) preferred to keep the repo rate steady, while two favoured a 25-basis-point cut.

“We look forward to (inflation) expectations declining further as South Africans experience ongoing lower inflation,” Kganyago said.

South Africa’s headline inflation rate inched up to 3.6% in December from November, above the bank’s 3% target but staying within its one-percentage-point tolerance band.

Kganyago said on Thursday that bank officials thought December’s inflation reading would be the peak and inflation would slow from there.

But he said the MPC was concerned about electricity prices, given the energy regulator has admitted errors in its previous calculations which are expected to result in steeper tariff hikes than previously announced.

Kganyago also stressed elevated uncertainties from global trade tensions and jittery financial markets.

The central bank tweaked its inflation forecasts for this year and next, now seeing headline inflation averaging 3.3% in 2026 and 3.2% in 2027, compared to 3.5% and 3.1% previously.

It kept its economic growth forecasts for this year and next unchanged, at 1.4% for 2026 and 1.9% for 2027.