Overview
- The South African Reserve Bank left the repo rate at 7.0% and the prime lending rate at 10.5% following its July Monetary Policy Committee meeting.
- The six-member MPC voted 4–2 to hold rates, with two members favouring a 25 basis-point hike and Governor Lesetja Kganyago able to cast a deciding vote if needed.
- The hold spares borrowers an immediate increase in mortgage costs so a 20-year R2 million bond at prime remains about R19,968 per month.
- Analysts note that a 25 basis-point rise would have added roughly R335 a month to that R2 million mortgage, illustrating how small policy moves quickly affect household budgets.
- Inflation remaining above the Reserve Bank’s preferred midpoint and external risks such as higher oil prices and geopolitical tensions are keeping the policy outlook uncertain ahead of the 23 September 2026 MPC meeting.