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A Good Surprise

In a move that few saw coming, consumers were relieved when the SARB’s Monetary Policy Committee announced that the Repo Rate remains unchanged in July 2026.

 

War In The Middle East

Despite the current high rate of inflation that is well beyond that being targeted by the South African Reserve Bank (SARB), as well as, the situation in the Middle East driving fuel costs up once again rates remain at 7%.

REPO RATE 7%

The Committee reasoned that the international fuel price is a main driver in current higher than hoped for inflation figures (5% instead of 4%) and not dependent on local factors. This helped them to decide to hold the rates (for now).

They did point out that there are scenarios where ongoing conflict and persistent high oil prices will eventually drive the need for a rate hike. For now, however, consumers have dodged a rate hike, which would have seen them paying more interest on their existing debts.