by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – FIRST National Bank (FNB) has confirmed it will keep its prime-linked lending rates unchanged following the South African Reserve Bank’s Monetary Policy Committee (MPC) decision to hold interest rates steady.
The bank will reassess its position after the MPC’s next meeting in March 2026.
According to FNB, the decision does not alter expectations of a gradually improving economic outlook.
CEO Harry Kellan said relatively strong currency performance, easing fuel prices, and contained inflation pressures continue to support the prospect of rate cuts later in the year.
“While today’s decision delays anticipated relief, the underlying economic indicators remain constructive. Further rate reductions would help bolster business confidence and provide incremental support to consumers as the year progresses,” Kellan said, noting that the bank remains attentive to global risks that could affect domestic conditions.
FNB Chief Economist Mamello Matikinca-Ngwenya highlighted the significance of South Africa’s removal from both the Financial Action Task Force grey list and the European Union’s high-risk jurisdictions list.
She said the move strengthens investor confidence at a time when global demand for key South African commodities is improving.
Rising prices for metals such as gold, silver, and nickel are expected to boost export earnings, improve fiscal resilience, and support investment flows, particularly in the mining sector, a critical source of employment and economic activity.
Matikinca-Ngwenya added that the MPC’s cautious stance reflects its commitment to anchoring inflation at the 3% target over the medium term. Despite softer inflation trends and improved expectations, structural price rigidities require monetary policy to remain restrictive for longer to contain core inflation.
FNB said continued fiscal consolidation, economic reforms, and disciplined pricing behaviour will be key to accelerating the decline in borrowing costs.
In the interim, the bank encourages businesses and consumers to remain financially disciplined while leveraging available tools to improve cost efficiency and resilience.
– CAJ News