Reserve Bank Governor Lesetja Kganyago has announced that the repo rate will be cut by 25 basis points – meaning that the prime lending rate will decline to 10.25%.

Kganyago made the announcement in Pretoria on Thursday, following the three-day Monetary Policy Committee meeting.

The rate cut was widely expected.

Announcing the rate cut in Pretoria, Governor Kganyago says the decision was unanimous among all MPC members.
He adds that the Quarterly Projection Model continues to forecast gradual rate cuts as inflation subsides.

Kaganyago says the bank continues to closely monitor inflation.

Kganyago says, “Because of these downside surprises, together with a stronger rand and a lower oil price assumption, we have small downward revisions to our inflation outlook, for both 2025 and 2026. We remain on track to deliver 3% inflation over the medium term.”

MPC Repo Rate announcement: