The South African Reserve Bank cut its benchmark repo rate by 25 basis points to 6.75% on 20 November 2025, extending an easing cycle that has now delivered six 25 bp reductions, interrupted by holds, since it began in September 2024. The decision brings the prime lending rate down to 10.25%.
The Monetary Policy Committee cited an improved inflation outlook as the basis for the move, pointing to recent inflation outcomes slightly below forecast, a stronger rand, lower oil prices and the new 3% inflation target. The SARB published the decision in a statement on its website following the conclusion of the MPC meeting.
EASING CYCLE REACHES SIXTH MOVE
Each move in the cycle, including the November decision, has been 25 basis points.
Many mortgage and small-business borrowing costs in South Africa are linked to the prime lending rate, now 10.25%.
INFLATION OUTLOOK
The Committee's statement pointed to an improved inflation outlook as the key reason for the November decision. Headline inflation rose to 3.6% in October, driven by meat, vegetable and fuel prices, but the MPC described the pressure as temporary and expects inflation to head lower from early 2026. The SARB monitors a range of measures, including core inflation that strips out volatile food and energy components, and the Committee judged that there was scope to make the policy stance less restrictive.
Looking ahead, the Committee noted it would continue to assess the balance of risks to both the inflation outlook and economic growth. The bank has said further moves will depend on incoming data rather than a pre-set schedule.