Nokukhanya Mntambo29 May 2025 | 13:19

SARB MPC cuts repo rate by 25 basis points to 7.25%

The new rate comes into effect from 30 May.

SARB MPC cuts repo rate by 25 basis points to 7.25%

South African Reserve Bank Governor Lesetja Kganyago. Picture: @SAReserveBank/X

JOHANNESBURG - The South African Reserve Bank (SARB)'s monetary policy committee 9MPC) has slashed the repo rate by 25 basis points, bringing the benchmark rate down to 7.25%.

The MPC deliberated on policy rates this week, wrapping up the May meeting on Thursday.

This is the first cut since the MPC paused its rate-cutting cycle in the previous meeting.

Reserve Bank Governor Lesetja Kganyago said that five MPC members voted in favour of the cut, with one member in favour of a bigger cut.

"Moving to prices, inflation was below 3% again in April. The undershoot of the target mainly reflects falling fuel costs, but underlying inflation is also well contained. Core inflation came in at 3%, at the bottom of our target range. Against this backdrop, the MPC decided to reduce the policy rate by 25 basis points, with effect from 30 May."