Amid the Rand strong rally against the dollar, breaking through the R16 band to R15,97 for the first time in four years, how is the South African Reserve Bank Monetary Policy Committee(MPC) going to manage the buoyancy in respond to the strength showing of a Rand as well as the volatility of the Rand at the present moment.
One of the main mandate of the bank is to manage inflation, of which its target was recently revised down to 3% from a range of 3%-6%.
In its last MPC meeting held November 2025 the committee reached a consensus decision to cut the repo rate by 25 basis points to 6,75% citing the desired improved inflation outlook.
It is a wait and see scenario.
The Repo Rate was left unchanged at 6,75%
The repo remained unchanged with 4 in agreement whereas 2 opted for a cut.