MNI SARB Review - Nov 2025: Confident 25bp Cut

Download Full Report Here

Executive Summary:

• The Committee unanimously voted for a 25bp rate cut.
• Monetary policy restriction was reduced amid an improved inflation outlook.
• Key risk scenarios involved ZAR depreciation or a spike in administered prices.

The South African Reserve Bank (SARB) reduced interest rates by 25bp in a unanimous vote, bringing the policy rate to 6.75%, closer to a neutral setting. The Monetary Policy Committee (MPC) chose to look through what it deemed a temporary upturn in inflation, as updated forecasts and the assessment of risks increased its confidence of being on track to hit the downshifted +3.0% Y/Y target over the medium term. However, the panel attached a risk scenario analysis, focusing on potential rand depreciation or a spike in administered prices, concluding that the materialisation of either risk would lead to tighter monetary policy.