SARB Cuts Repo Rate To 6.75% As Inflation Outlook Improves

The South African Reserve Bank’s Monetary Policy Committee (MPC) has lowered the repo rate by 25 basis points to 6.75%, offering a modest dose of relief in line with market expectations.

The meeting, held this week, marked the committee’s final interest rate decision of the year, concluding a cycle closely watched by households, businesses and investors.

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Reserve Bank Governor Lesetja Kganyago confirmed that all six MPC members supported the move, signalling confidence in the country’s improving inflation trajectory.

“Against this backdrop, the MPC decided to reduce the policy rate by 25 basis points, to 6.75%, with effect from 20 November. Members agreed there was scope now to make the policy stance less restrictive, in the context of an improved inflation outlook,” Kganyago said.

Inflation Trends Support Looser Policy Approach

Inflation edged up to 3.6% in October, according to the latest figures from Stats SA released on Wednesday.

While this is higher than the 3% average recorded earlier in the year, Kganyago emphasised that the rise was largely driven by temporary factors in non-core categories, with inflation expected to ease again early next year.

“Because of these downside surprises, together with a stronger rand, and a lower oil price assumption, we have small downward revisions to our inflation outlook, for both 2025 and 2026. We remain on track to deliver 3% inflation over the medium-term,” he said.

SARB: Improved Rand, Lower Oil Price Bolster Outlook

The combination of a firmer rand and easing global oil prices has strengthened the Reserve Bank’s confidence that inflation will continue its downward trajectory over the next two years.

Against this backdrop, the MPC decided to reduce the policy rate by 25 basis points, to 6.75%, with effect from 21 November.  #SARBMPCNOV2025 pic.twitter.com/debdLemQgq

— SA Reserve Bank (@SAReserveBank) November 20, 2025

The latest forecasts suggest a stable environment that could keep monetary policy at a supportive level heading into 2026.

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