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# South African Reserve Bank Cuts Repo Rate by 25 Basis Points to 7.25%
- URL: https://www.theglobalbanker.com/south-african-reserve-bank-cuts-repo-rate-25-basis-points-7-25-may-2025/
- Published: 2025-05-29T13:00:00.000Z
- Updated: 2026-10-28T08:59:57.000Z
- Description: The SARB's MPC cut the repo rate by 25 basis points to 7.25%, citing contained inflation at 2.8% and the need to support economic growth in South Africa.
- Author: TGB Editorial Team
- Tags: Central Banks, Africa, #archive

The South African Reserve Bank reduced its benchmark repurchase rate by 25 basis points to 7.25% at the conclusion of its Monetary Policy Committee meeting on 29 May 2025, citing contained inflation and the need to support economic activity. 

Consumer price inflation in South Africa stood at 2.8% at the time of the decision, placing it below the bottom of the SARB's 3% to 6% target range. 

#### INFLATION BELOW TARGET MIDPOINT

The below-midpoint outcome was driven predominantly by lower fuel prices.

The MPC said it regarded a scenario built around a 3% inflation objective as more attractive than the 4.5% baseline, and would like to see inflation expectations settle lower.

#### GROWTH SUPPORT CITED AS RATE CUT RATIONALE

The MPC's decision to cut rates rather than hold was influenced by its assessment that the South African economy needed support to achieve its growth potential. 

The Committee's statement acknowledged the uncertain global economic environment, which poses risks to South African growth through trade and commodity price channels. 

The SARB's Monetary Policy Committee meets six times a year. Governor Lesetja Kganyago said that under a 3% inflation-target scenario the policy rate would fall to just under 6%, rather than staying above 7% as in the baseline projection.