Monetary Policy Committee cuts interest rate by 25 basis points

Reserve Bank Governor Lesetja Kganyago addresses the Annual Ordinary General Meeting

1 minute

The Monetary Policy Committee (MPC) has cut the interest rate by 25 basis points, with effect from tomorrow.

As a result, the repo rate has been decreased to 7.25%.

The prime lending rate is now 10.75%.

South African Reserve Bank (SARB) Governor Lesetja Kganyago says although inflation looks stable, they also considered a scenario where it could increase

“The MPC decided to reduce the policy rate by 25 basis points with effect from the 30th of May. Five members favored this action, while one preferred a cut of 50 basis points. While the inflation outlook appears benign, we considered an adverse scenario that captures potential upside risks. This was based on a global slowdown triggered by escalating trade tensions where the rand depreciates sharply.”

[BREAKING NEWS] Reserve Bank Governor Lesetja Kganyago says the Monetary Policy Committee (MPC) has decided to cut the interest rate by 25 basis points. The repo rate is now down to 7.25%. pic.twitter.com/fw5HUyirmK

— SABC News (@SABCNews) May 29, 2025