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South Africa: Central Bank Holds Rates at 7%, Defying Market Expectations
The South African Reserve Bank (SARB) maintained its policy rate at 7% on July 23, 2026, according to ANSA, defying market expectations for a second consecutive rate increase. Governor Lesetja Kganyago announced the decision following the Monetary Policy Committee meeting. The commercial bank prime rate remains at 10.5%. SARB's base scenario forecasts unchanged rates for the rest of 2026, though Kganyago left open the possibility of a rate cut by year-end. Inflation is expected to stay above 4% through the rest of 2026, with service prices exceeding 3% signaling underlying inflationary pressures.