Interest rates remain unchanged despite inflation outlook

THE South African Reserve Bank (SARB) has kept the prime lending rate at 10.25%, with two members favouring a 0.25 percentage point cut and four preferring a hold.

- NICOLA MAWSON

Lesetja Kganyago, SARB governor, said that the backdrop to the decision was that the risks to the inflation outlook were balanced.

Ahead of the announcement, there were hopes that the rates would come down to help boost economic growth.

At the most, however, economists and business leaders were expecting a 0.25 percentage point decrease. The rate has been cut a cumulative 1.25 percentage points since September 2024.

Johann Els, chief economist at PSG Financial Services, said earlier this week that he expected more rate cuts this year, with the possibility of one yesterday.