The South African Reserve Bank left its key interest rate unchanged at 7 percent as policymakers decided to adopt a wait-and-watch stance following a year-long easing and they also assessed that inflation is set to rise in the coming months due to higher prices for electricity, food and services, while economic growth is set to strengthen. The Monetary Policy Committee decided to hold the rate steady after a year-long easing in a split vote. Four policymakers preferred to keep rates on hold, while two favored a cut of 25 basis points, SARB Governor Lesetja Kganyago said in a statement.
The SARB reduced rates by 125 basis points since September last year. "…we want to see how this is affecting the economy, how expectations evolve, and how inflation risks are resolved," Kganyago said.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.