FX.co ★ South Africa Leaves Monetary Policy Untouched

The South African Reserve Bank left its key repo rate unchanged at 6.75% on March 26, 2026, in a unanimous decision that was widely anticipated, marking a second consecutive pause. Policymakers noted that risks to the inflation outlook remain tilted to the upside, largely due to the ongoing conflict in the Middle East. Reflecting these concerns, the central bank raised its inflation forecasts to 3.7% for 2026 (from 3.3%) and 3.3% for 2027 (from 3.2%), and revised its projected year-end policy rate to 6.47% (from 6.31%). The SARB also presented two potential scenarios related to the Iran conflict—a short, two-month disruption and a more prolonged, one-year shock—both of which would necessitate higher interest rates.