The South African Reserve Bank (SARB) is set to announce its decision on interest rates on Thursday, with some economists predicting a possible 25-basis point cut.
Statistics South Africa reported that consumer price inflation rose from 3.4% in September to 3.6% in October 2025. Despite the slight increase, economist Elize Kruger says inflation remains stable and close to the Reserve Bank’s 3% target.
Kruger highlighted continued improvements in food prices. “Food price inflation moderated further from a recent peak of 5.5% in July. It is now down to 3.9%, and we have seen three consecutive months of declines in the food price basket,” she said.
She added that the current conditions create an opportunity for the Reserve Bank to lower interest rates during Thursday’s Monetary Policy Committee meeting. “I do expect a 25-basis point cut in the repo rate,” Kruger said.
Reserve Bank Governor Lesetja Kganyago will deliver the announcement.
