SARB Holds Rates at 6.75% as Split Vote Signals Pivot Risk

The South African Reserve Bank (SARB) maintained its benchmark repurchase rate at 6.75% on Thursday, acknowledging an improving inflation outlook while resisting immediate monetary easing.

Dovish Dissent Emerges

The decision was not unanimous. The MPC voted 4-2 in favor of holding rates, with two members dissenting in favor of an immediate cut.

For Forex markets, the emergence of dissent is a critical signal. While the ZAR retains its yield appeal for now, the dissenting votes suggest that the SARB's tightening cycle has peaked.

Data Snapshot

• Current Repurchase Rate: 6.75%
• MPC Vote Split: 4-2
• Key Currency: ZAR

Inflation Outlook Improving

The central bank noted that the inflation outlook is improving, providing the fundamental basis for the minority's call to cut rates. However, the majority preference for a hold suggests a “wait-and-see” approach remains the dominant strategy.