https://newsletter.en.creamermedia.com
Africa
Africa
africa

South Africa may hit 3% inflation in 2026, central bank says

Reserve Bank governor Lesetja Kganyago

Reserve Bank governor Lesetja Kganyago

20th January 2026

By: Reuters

  

Font size: - +

South Africa's central bank governor Lesetja Kganyago said on Tuesday that inflation was on course to meet the bank's new target of 3% in 2026 as prices remained stable.

With annual inflation for 2025 due to be released on Wednesday, Kganyago said the South African Reserve Bank (SARB) expected it between 3.2% and 3.4%.

Last year, South Africa's government and central bank lowered the inflation target for the first time in 25 years to 3%, with a one-percentage-point tolerance band on either side. The bank had initially forecast that being reached by 2027.

"We expect that inflation this year would average 3.6% ... if you break that inflation across the categories ... all of them have got a three handle which then says that we are on course even for 2026 to meet our new inflation target," Kganyago told Reuters on the sidelines of the World Economic Forum meetings in Davos. 

The central bank's main lending rate is currently at 6.75%.

Kganyago said that under the bank's projection model, there was still scope for another two 25 basis points of rate cuts this year.

The first meeting of the South African Reserve Bank's Monetary Policy Committee will be held next week.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Comments

Showroom

AQS Liquid Transfer
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
Astore Keymak
Astore Keymak

Astore Keymak is one of South Africa’s leading suppliers of high-quality Thermoplastic Pipeline Systems, with branches in the major provinces.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (16/01/2026)
16th January 2026 By: Martin Creamer
Magazine round up | 16 January 2026
Magazine round up | 16 January 2026
16th January 2026

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.213 0.322s - 186pq - 2rq
Subscribe Now