By Thebe Mabanga
The South African Reserve Bank’s Monetary Policy Committee (MPC) voted 4–2 to keep interest rates unchanged, with the minority advocating a 25 basis-point cut losing out. The repo rate therefore remains at 7%, after a cumulative reduction of 125 basis points since September last year.
At the same time, Reserve Bank Governor Lesetja Kganyago showed deference to Finance Minister Enoch Godongwana, subtly acknowledging that while he might prefer the inflation target be lowered to the bottom of the 3–6% range, the ultimate decision rests with Godongwana.
Kganyago and the MPC held rates steady, even as they acknowledged that conditions could support a cut, with global growth remaining resilient despite disruptions to trade from U.S. tariff adjustments, and local growth having been revised upward.
“The global economy appears resilient so far. While the geopolitical environment remains difficult, and trade disruptions continue, growth is holding up and market volatility
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