The South African Reserve Bank raised its key repo rate by 25 bps to 7% on May 28, 2026, as widely expected, marking its first rate hike since 2023. Four members backed the decision, while two voted to hold. The committee said inflation risks had intensified and warned that large, overlapping shocks could trigger second-round effects, justifying a monetary policy response aimed at containing risks and steering inflation back to target. South Africa’s inflation rate climbed to 4% in April from 3.1% in March, now sitting at the upper end of the central bank’s target range.