The South African Reserve Bank cut its key repo rate by 25 bps to 6.75% on November 20, 2025, as widely anticipated, after keeping it unchanged at 6.50% in September. The decision was unanimous, with officials agreeing that policy can now be eased amid a more favorable inflation outlook and balanced growth risks. Policymakers noted that inflation has accelerated somewhat over the past few months, reaching 3.6% for October, but they expect this to be temporary, with inflation remaining on track to meet the new 3% medium-term target. The inflation forecasts for 2025 and 2026 were slightly revised downward to 3.3% (from 3.4%) and 3.5% (from 3.6%), respectively. Regarding economic activity, the SARB raised its 2025 growth forecast to 1.3% (previously 1.2%) and maintained the 2026 projection at 1.4%. Looking ahead, the central bank noted that its Quarterly Projection Model continues to forecast gradual rate cuts as inflation subsides.