South African Reserve Bank Hikes Interest Rates by 25 Basis Points
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The South African Reserve Bank announced a hike of 25 basis points to its interest rates on Wednesday, September 23, 2026. The Monetary Policy Committee unanimously made the decision, setting the new repo rate at 7.25% and the prime lending rate at 10.75%. The increase is effective from Friday, September 25, 2026.
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Why it matters
The Reserve Bank stated the hike was necessary to cool rising inflation, which currently stands at 4.4%, against its target of 3%. Governor Lesetja Kganyago noted that the global environment remains challenging due to geopolitical risks, including the Middle East conflict and oil supply interruptions.
From citizen.co.za
Who's involved
- European Central BankCentral bank of the South African Reserve Bank (SARB)
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- European Central BankSpeculative
The hike could affect the purchasing power of the rand and the cost of capital for businesses operating in South Africa.
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The entities involved
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European Central Bank
central bank of the European Union and the eurozone
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Reserve Bank of India
central bank of India
Related events
- RBI may raise interest rates due to inflation.
- The European Central Bank and the South African Reserve Bank are both reacting to global inflation.
- The European Central Bank raised interest rates on June 11th, 2026, in response to inflation driven by the ongoing Iran war.
- Bajaj Finance adheres to central bank guidance on lending practices.
- Divergent interest rate policies are emerging between the Bank of England and the European Central Bank.