SARB hikes repo rate to 7.25% amid global shocks

South Africa’s repo rate is heading higher after the South African Reserve Bank (SARB) Monetary Policy Committee (MPC) increased the policy rate by 25 basis points, effective from 25 September, Joburg Etc reports.

The policy rate will rise to 7.25%, up from 7% at the previous MPC meeting. The decision was unanimous, according to the SARB’s announcement on X.

The Reserve Bank pointed to growing uncertainty in the global economy as part of its reasoning for the move. ‘Geopolitical conflicts have caused severe negative supply shocks, which weaken output and raise inflation,’ the SARB said in a statement shared on social media.

Geopolitical conflicts have caused severe negative supply shocks, which weaken output and raise inflation. #SARBMPCSEP2026 pic.twitter.com/LNkYvl2gXa

SA Reserve Bank (@SAReserveBank) September 23, 2026

What it means for your pocket

The rate hike could mean higher repayments for people with variable-rate home loans, car finance, personal loans and credit-card debt, depending on their outstanding balance and loan terms.

Savers could see some benefit, as higher rates can mean better returns on certain savings products.

The increase does not mean everyday prices will automatically rise by 0.25%. Its impact on households will largely depend on how much they borrow, save and spend.

The MPC decided to increase the policy rate to 7.25%, up from 7% in the last MPC.#SARBMPCSEP26 pic.twitter.com/SprP0JDlhi

SA Reserve Bank (@SAReserveBank) September 23, 2026

The SARB’s monetary policy mandate is focused on protecting the value of the rand and keeping inflation low and steady.

The latest decision also comes as geopolitical tensions continue to affect global supply conditions, with the Reserve Bank saying these disruptions are adding to inflation risks.