South African Interest Rate Decision 6.75% vs. Exp. 6.75% (Prev. 6.75%); two members favoured a cut of 25bps, while four preferred a hold.

• "We assess the risks to the inflation outlook as balanced."
• "Inflation was a bit higher towards the end of the year, mainly because of temporary factors. The December print came in at 3.6%. However, we expect this was the peak, and that inflation will slow from here."
• "... services inflation is still over 4%. It is desirable to have services inflation moving closer to 3%... "

The South African Reserve Bank maintained its interest rate at 6.75%, aligning with expectations but reflecting internal division, as two members favored a cut. This decision suggests a cautious view on inflation, acknowledging temporary pressures but forecasting a decline moving forward. The balance of risks indicates the bank's position remains data-dependent, which could signal a dovish tone going ahead, impacting ZAR and broader market sentiments.