REMAX Southern Africa anticipates a cautious stance by the SARB, with rates likely to remain unchanged amid rising inflation risks and global instability.
As the country awaits the upcoming Monetary Policy Committee (MPC) announcement on 28 May 2026, current economic indicators are pointing towards the South African Reserve Bank (SARB) keeping interest rates unchanged, a cautious stance in face of the emerging inflationary pressures and heightened global uncertainty.
According to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, the MPC is likely to hold interest rates steady as they assess the longevity of the current inflation pressures and geopolitical tensions.
“Although inflation has remained relatively stable in recent months, the underlying risks have shifted notably this year, and we therefore do not expect the SARB to rush into any policy changes at present,” explains Goslett.
The Monetary Policy Committee Review for April 2026 further highlights that global disinflation has been interrupted by supply-side shocks, particularly the current geopolitical tension that has pushing up oil and commodity prices. As a result, inflation is expected to increase during the year, however, it is likely to still remain within the SARB’s target range of 3% to 6%.
“It’s evident that the SARB is adopting a caution over action approach, given the current inflation risks and global markets volatility that have distorted the upside movement we were seeing. While disappointing, it is understandable that policymakers will prefer to pause instead of prematurely cutting rates further,” says Goslett.
For the property market, a prolonged hold in interest rates could provide a degree of stability, even if it delays potential relief for homeowners and buyers. While lower borrowing costs would support affordability, stability in the rate environment allows buyers and sellers to plan ahead and make more informed decisions.
For more real estate advice or to get in touch with your nearest REMAX Office, visit www.remax.co.za.
