The decision by the South African Reserve Bank (SARB) to hold the repo rate at 6.75% in the March Monetary Policy Committee meeting reflects a cautious but pragmatic response to ongoing global volatility.
Image: Khaya Ngwenya
The South African Reserve Bank's (SARB) decision to keep a steady hold on interest rates at 6.75% at the Monetary Policy Committee (MPC) meeting was inevitable.
Delivering the March 2026 Monetary Policy Committee's (MPC) interest rate decision on Thursday afternoon, Lesetja Kganyago, the Governor at the South African Reserve Bank(SARB), said that the committee decided to keep the policy rate unchanged, at 6.75%. He described this decision of the committee as unanimous.
“The only certainty is uncertainty at the moment, especially as the country braces for one of the highest ever fuel price hikes, says Greg Dart, director of the High Street Auction Company.
He says that, like the American Central Bank, the SARB decided to follow the path of caution given the domino effect of expected fuel price hikes on inflation, including food and services.
“The risk of global recession and further fallout from the conflict in the Middle East remains, but there is good reason to remain optimistic. ”
According to Dart, once SA has ridden out the perfect storm of a rocketing oil price and a weakening rand, the SARB will resume repo rate cuts, striving to maintain economic recovery that became evident in late 2025.
He says supply chain constraints that are likely to delay or push the prices of imports may even boost local production, aiding recovery. The challenge is to remain patient.
Meanwhile, investors and residents may change their outlook on where they live, he notes.
In the wake of the Covid-19 pandemic and technology changes, the work-from-home trend persuaded many South Africans that living far from work was manageable. Hikes in the price of public and private transport may prompt many to move closer to cut travel costs, says Dart.
He says this supports the emerging trend of investors snapping up older buildings in central locations for conversion into residential accommodation. “This especially applies to affordable housing and the development of properties for rental.”
The decision to hold the repo rate at 6.75% reflects a cautious but pragmatic response to ongoing global volatility, says Fritz Swanepoel, CEO of Leapfrog Property Group. He says while many were hoping for a further cut, stability at this level provides something the property market values highly- predictability.
“In an environment where fuel and electricity costs are set to rise, certainty becomes more important than marginal rate relief. It allows both buyers and homeowners to plan with confidence, and confidence is what ultimately drives property markets forward.”
Importantly, Swanepoel says SA must not lose sight of how far conditions have improved. Compared to 18 months ago, lending conditions remain supportive, banks are still competing, and well-priced property continues to move.
The MPC’s cautious approach highlights a complex global environment that continues to outweigh positive domestic economic signals, says Rhys Dyer, CEO of the ooba Group.
He says that, however, given the magnitude of the situation globally, he believes that a rate hold is an expected outcome for the local property sector, which continues to thrive in a stable local environment.
He says the residential property market continues to show resilience with national house price inflation accelerating in early 2026, and the upward momentum is further reflected in ooba Home Loans’ latest purchase price figures, with the average national purchase price reaching a record R1.75 million in February 2026 (a staggering 6.5% year-on-year increase).
Dyer says the buoyancy of the market is being driven by a supportive lending environment, in which more banks are granting 100% (plus costs) home loans.
“While a hold on interest rates offers some welcomed breathing room for consumers, the broader economic environment remains uncertain,” says Adrian Goslett, CEO and regional director of REMAX Southern Africa.
“Global tensions, particularly those impacting oil supply, are likely to influence fuel and food prices locally, which could place upward pressure on inflation later in the year,” he says.
Despite interest rates remaining unchanged, Goslett says that the property market continues to operate with caution. He adds that buyers and sellers alike are navigating mixed signals, balancing improved affordability against concerns of future rate movements.
On the positive side, interest rates have eased back to levels comparable to the pre-Covid period (6.5% in October 2019). “Thankfully, we are well below the peak of 8.25% seen in 2023,” Goslett notes.
“While stability in rates is the best we can hope for now, that confidence will depend on a clearer economic direction. For now, the unchanged rate supports transactional activity, but strained momentum will require greater certainty around inflation and future rate decisions,” Goslett says.
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