SARB holds rates steady as financial resilience remains important

First National Bank (FNB) will maintain its prime lending rate at current levels following the SARB Monetary Policy Committee’s decision to keep the repo rate unchanged. FNB will review its lending rates following the MPC’s next interest rate decision in September.

“The decision to keep interest rates unchanged provides welcomed stability for consumers and businesses navigating a challenging economic environment.  While financial pressures persist across many households and sectors of the economy, a stable interest rate environment creates an opportunity for customers to manage their finances with greater confidence, improve their financial position and make more informed long-term decisions,” says FNB CEO Lytania Johnson.

Over the past few years, South Africans have demonstrated remarkable resilience in adapting to changing economic conditions.

“Through our insights, we continue to see households taking a disciplined approach to managing their finances, carefully balancing essential spending while actively seeking opportunities to improve their financial well-being. Encouragingly, many customers are making more deliberate financial decisions and building greater financial resilience. Businesses are showing similar adaptability, pursuing growth opportunities and long-term sustainability in a competitive environment,” says Johnson.

Mamello Matikinca-Ngwenya, FNB Chief Economist says, “The MPC’s decision to keep the repo rate unchanged reflected a careful balancing of weak growth against inflation risks that have moderated since the previous meeting. Domestic activity remained subdued, with real GDP growth expected to improve only gradually from 1.1% in 2025 to around 1.2% in 2026, before strengthening to about towards 2.0% by 2028.”

“Recent business and activity indicators continue to point to a soft domestic economy, with confidence weighed down by higher operating costs and still-tight financial conditions. Against this backdrop, the decision to hold rates recognised the limited momentum in growth while allowing the SARB to maintain a cautious stance as inflation converged towards its 3% objective.”

Matikinca-Ngwenya highlights that importantly, the inflation risk profile has d become less acute. “Oil prices had eased from recent elevated levels, reducing some of the external pressure on the inflation outlook, while the absence of a further material shock gave the MPC room to pause rather than tighten further. Although inflation expectations remained above levels consistent with the new objective and geopolitical uncertainty in the Middle East continued to pose upside risks to energy prices, these risks appeared more contained than at the previous meeting.”

“As a result, keeping rates unchanged struck a balance between supporting a fragile growth environment and preserving the credibility of the transition towards a lower inflation target,” she adds. Johnson notes that business and consumer confidence remain important drivers of economic growth and job creation. “While today’s decision offers some short-term certainty, customers should continue to maintain sound financial habits, review their budgets regularly and make informed financial decisions.”

“At FNB, we remain committed to helping customers navigate changing economic conditions through innovative tools, personalised insights and practical solutions that empower better financial decision-making. Digital tools such as nav» and My Advisor provide customers with greater visibility of their financial position, helping them plan more effectively, manage their money with confidence and build long-term financial resilience, regardless of where interest rates move in future,” concludes Johnson.

FNB continues to support customers who may be under financial pressure through tailored repayment solutions and debt relief options. Customers experiencing financial difficulty are encouraged to contact FNB through its digital platforms or branches to access and arrange discussions on available support. The bank also reviews investment rates weekly, independently of the SARB’s MPC announcements. Any changes to rates are communicated in branches and on FNB’s website: www.fnb.co.za.