The South African Reserve Bank (SARB) on Wednesday, September 23, 2026, increased its policy rate by 25 basis points to 7.25 per cent, citing renewed fuel-price pressures and persistent global supply disruptions. The Monetary Policy Committee unanimously approved the increase, which takes effect on September 25.
The central bank said conflicts in the Middle East and between Russia and Ukraine were disrupting global energy and food supplies. It expects headline inflation to exceed five per cent later in 2026 and early 2027 before declining towards its three per cent target by the end of 2027.
SARB also reduced South Africa’s 2026 economic growth forecast from 1.4 per cent to 1.2 per cent after the economy contracted by 0.2 per cent in the second quarter. However, it expects growth to recover during the second half of the year.
The decision followed an increase in annual consumer inflation from 4.3 per cent in July to 4.4 per cent in August.