Story details
South Africa’s Monetary Policy Committee raised the repo rate by 25 basis points to 7.25%, effective 25 September, the Reserve Bank said in its September statement. The decision was unanimous. The Bank cited higher fuel prices and broader global supply shocks, while noting that food inflation was at its lowest since 2010 and the rand had helped contain import prices.
The Bank reported that the economy contracted 0.2% in the second quarter and projected annual growth of 1.2%, down from 1.4%. It expects headline inflation to exceed 5% later this year and early next year before easing as the fuel shock fades; inflation is projected to return to around the 3% target toward the end of 2027.