SARB Keeps Repo Rate At 6.75%

The South African Reserve Bank's Monetary Policy Committee this week kept the repo rate unchanged at 6.75%, with four members supporting the decision and two favouring a 25 basis-point cut. Governor Lesetja Kganyago cited progress on domestic reforms, 2025 as a watershed year, and near-term inflation around 3.2% (December 3.6%), while forecasting gradual cuts toward neutral by 2027.
Key Points
- 1Keeps repo rate at 6.75% with four MPC votes; two members preferred a 25bp cut.
- 2Warns of elevated geopolitical tensions, AI-bubble risks, and global imbalances affecting inflation and markets.
- 3Signals gradual easing: model forecasts cuts toward neutral by 2027, contingent on inflation and shocks.
Scoring Rationale
Official SARB decision with clear projections; high macro relevance but limited relevance to AI/ML practitioners.
Sources
Public references used for this report.
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