MPC decreases repo rate by 25 basis points to 7.5%

JOHANNESBURG - The South African Reserve Bank (SARB)'s monetary policy committee has announced a repo rate reduction of 25 basis points to 7.5%.

Four members of the committee agreed on a rate drop, while two supported an unchanged stance.

The committee ultimately agreed that it was possible to reduce the degree of policy restrictiveness, making the stance somewhat more neutral.

However, all members expressed concerns about the uncertain global outlook.

Reserve Bank Governor Lesetja Kganyago made the announcement during a briefing in Johannesburg on Thursday.

"The risks to the inflation outlook are assessed to the upside. In the near term, inflation appears well contained. However, the medium-term outlook is more uncertain than usual, with material risks from external environment. Domestic factors such as administered prices are also problematic. Against this backdrop, the MPC decided to reduce the policy rate by 25 basis points with effect from the 31st of January 2025."