By Thebe Mabanga
The Reserve Bank’s Monetary Policy Committee (MPC) kept interest rates on hold at its first meeting of the year, despite benign conditions for the inflation outlook.
Two members of the committee opted for a cut, while the remaining four voted to hold.
The decision comes against a backdrop in which average inflation for 2025 was the lowest in 25 years at 3.2%.
The price of gold reached a new record of $5 500, having doubled over the past year.
Oil prices rose to $70 but remain historically low, despite United States President Donald Trump’s threat to attack Iran.
Meanwhile, the rand traded at R15.88 to the dollar, making it the second-best-performing emerging market currency this year.
All of these factors are expected to shield the South African economy from imported inflation and keep inflation on track to meet the Reserve Bank’s new target of 3% over the
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