The South African Reserve Bank’s MPC (Monetary Policy Committee) has decided on a 25-basis-point rate hike, bringing the interest rate back up to 10.75%.
Due to the renewed oil-price pressure, there is a risk that inflation will not return to its 3% target as previously expected. The rate hike response is a pre-emptive action ahead of upcoming inflationary pressures.
“Morgan Stanley argues that higher oil prices also weaken the effectiveness of a strategy of keeping rates unchanged for longer.” – BusinessTech, 21 September 2026
For an article regarding this period’s interest rate decision, please refer to Reserve Bank hikes interest rates in South Africa.
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