As it stands, opinion is divided over what the South African Reserve Bank’s Monetary Policy Committee (MPC) may elect to do later this week.
Forward rate agreements point to a cut of 25 basis points, which is echoed by Bloomberg consensus.
However, many local economists foresee a hold on rates being just as likely, given the lingering uncertainty in global markets.
The decision to hold rates at the most recent meeting in March was not unanimous, and another split vote is expected on Thursday, 29 May.
Four committee members voted to keep rates on hold, while two others preferred a 25-basis point cut.
Reminder
The SARB elected to keep interest rates on hold in the country when its Monetary Policy Committee met for the second time in 2025 on 20 March.
As a result, the repo rate currently stands at 7.5% while the prime lending rate is 11%.
Who are the SARB’s MPC?
The South African Reserve Bank’s monetary policy committee meets every second month to announce changes – if any – to the country’s repo and prime lending rates.
The meetings in 2025 are scheduled to take place in January, March, May, July, September and November – and always on a Thursday at 15:00.
Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB – and the deciding vote if necessary.
