The Monetary Policy Committee voted 3–2 to keep the repo rate at 7.25% — the third consecutive hold and a result the curve had fully priced in by Tuesday.
Governor Kganyago's statement leaned hawkish in language and neutral in substance. Inflation is "stickier than we would like," services prices "remain a concern," and the committee "stands ready" — the boilerplate of a central bank that does not intend to cut soon.
By the numbers
- Repo rate: 7.25% (unchanged)
- Prime: 10.75%
- Headline CPI: 4.8% (April)
- Core CPI: 4.4%
- Vote split: 3 hold, 2 cut
What it means
For business: bond yields drifted three basis points lower on the day, but anyone betting on a near-term cut is now looking at September at the earliest. For households: prime stays where it is, which means the mortgage you already have does not get cheaper this quarter.
The rand traded in a ten-cent band against the dollar and closed where it started. The JSE All Share added 0.4%, led by banks.
The next MPC meeting is 23 July. Watch the May CPI print on the 22nd.
