SARB hikes policy rate 25bp to 7.25%, decision unanimous

On 23 September 2026 the South African Reserve Bank's Monetary Policy Committee unanimously raised the policy rate by 25 basis points to 7.25% (effective 25 September), and revised its 2026 growth forecast down to about 1.2%, citing higher fuel prices and global shocks.

A 25bp increase in the SARB policy rate lifts short-term ZAR yields and raises the cost of borrowing for issuers with near-term maturities or coupons linked to prime. The move can support the rand by narrowing interest-rate differentials but increases rollover risk and coupon-servicing costs for domestic corporates and government in the short-to-medium term.

Next SARB MPC meeting and the QPM updates projecting the timing/magnitude of future cuts or further hikes.