South Africa’s Monetary Policy Committee has decided to hold interest rates at its first meeting of 2026. The repo rate remains at 6.75%, after a split vote where four members backed a hold and two preferred a 25-basis-point cut.

For consumers, that means borrowing costs are not coming down yet. The prime lending rate used by banks stays at roughly 10.25%, so repayments on variable-rate credit stay where they are for now.

Why the Reserve Bank is Still Cautious

The central bank’s message is basically: inflation is behaving, but the risk list is still long. Inflation rose to 3.6% in December 2025, while the full-year average was around 3.2%, which is close to the bank’s newer, tighter 3% target. The bank expects inflation to cool again, but it is watching the next few months carefully.

Officials also flagged specific pressure points that could push prices back up. Those include food inflation risks linked to foot-and-mouth disease affecting meat prices and concern around administered prices, including electricity.

What This Means for Your Wallet

If you are paying off a bond, car finance or credit card debt, you are not getting a January break. Your instalments should stay steady unless your bank changes fees or pricing for other reasons.

Savers also see no change in interest earned on deposits tied to the prime-linked environment.

What to Watch Next

The next big question is timing. Some economists expect the first cut of 2026 could come later if inflation continues easing and downside risks do not flare up. Until then, the Reserve Bank has made it clear it will move meeting by meeting, based on data and the balance of risks.