The South African Reserve Bank (SARB) confirmed it will keep the policy rate at 6.75 percent, saying inflation remains within its target band even as world events threaten economic stability, reports Cape {town} Etc.
The Monetary Policy Committee (MPC) noted that headline inflation in South Africa was 3.0 percent in February, exactly on target.
The MPC keeps the policy rate unchanged at 6.75% #SARBMPCMAR26 #SARBPolicyRate pic.twitter.com/9exaivUfFW
— SA Reserve Bank (@SAReserveBank) March 26, 2026
Governor Lesetja Kganyago said the committee reached a unanimous decision to maintain the current rate. ‘Given current forecasts, we see inflation risks to the upside,’ he said, underlining the uncertainty caused by rising global energy costs and supply disruptions.
The statement emphasised that higher oil, gas and fertiliser prices have lifted global commodity prices and could push domestic headline inflation towards 4 percent in the near term.
The Bank expects fuel inflation to exceed 18 percent in the second quarter, though it remains confident inflation will return to 3 percent late next year.
Economists say the cautious approach reflects deepening uncertainties. The SARB also outlined adverse scenarios where prolonged global shocks could lead to higher inflation and pressure on interest rates. ‘We are still only a few weeks into this crisis,’ the statement noted, stressing the need for ongoing assessment.
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