Experts mostly expect interest rates to remain unchanged next week. The Monetary Policy Committee (MPC) is expected to meet next week Thursday for the first interest rate announcement of 2026.
Neil Roets, the CEO of Debt Rescue, said that they believe that, while a further interest rate cut remains possible, the balance of factors suggests it is more likely that the South African Reserve Bank (SARB) will keep interest rates unchanged at the next MPC meeting. “There are several moving parts influencing this decision, and the SARB will ultimately weigh both domestic inflation conditions and global risks before taking the next step in the rate-cutting cycle.”
Roets added that the SARB has reduced interest rates by a cumulative 150 basis points since the start of the current cutting cycle — bringing the repo rate down to 6.75% and the prime lending rate to 10.25% — consumers remain under intense financial pressure. “The cost of living is still stubbornly high, and many households continue to spend the bulk of their income on basic essentials such as food, transport, electricity, medical costs and school-related expenses.”