BUSINESS NEWS - With the South African Reserve Bank set to announce its next interest rate decision on 23 July, global uncertainty continues to cast a shadow over the country’s economy.
As the country prepares for the next interest rate announcement on 23 July, many South Africans may find themselves on the edge of their seats as speculation grows that another hike could be on the cards.
According to Adrian Goslett, CEO and Regional Director of REMAX Southern Africa, such an outcome won’t come as a surprise following the South African Reserve Bank’s (SARB) decision in May.
"Many homeowners and prospective buyers will be hoping for some relief when the Monetary Policy Committee meets later this month, but the SARB has to look beyond the immediate impact on consumers and focus on keeping inflation under control and ensuring long-term economic stability.”
“Given the level of global uncertainty and the inflationary risks that remain, it would not be surprising to see the Reserve Bank continue taking a cautious approach. Adding to this, any breakdown in ceasefire agreements introduces another layer of international instability and contributes to a more conservative financial decision by the SARB," he explains.
This sentiment is echoed by Hannah Marais in Deloitte's South Africa Economic Outlook (June 2026). “Recent SARB statements continue to highlight that the underlying drivers of recovery remain intact, citing favourable trading terms, macroeconomic resilience, and progress in ongoing domestic reforms. While South Africa’s near-term outlook has deteriorated, its medium-term trajectory has not fundamentally changed.”
Goslett notes that while another interest rate increase would place additional pressure on household budgets, it should be viewed in the context of the Reserve Bank's broader objective of maintaining long-term economic stability. With inflation currently at 4.5%, the SARB may consider further increases to keep inflation under control.
"Higher borrowing costs are never welcome, especially for homeowners and prospective buyers wanting to enter the market, but it’s important to remember that keeping inflation under control creates a more predictable environment. Although the months ahead may remain challenging, 2026’s outlook continues to point towards one of resilience,” concludes Goslett.
For more real estate advice or to get in touch with your nearest REMAX Office, visit www.remax.co.za.
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