Sarb Governor Lesetja Kganyago said the outlook had deteriorated significantly since the central bank's previous review in November 2025, largely due to the escalating conflict in the Middle East and its impact on the global economy.
The South African Reserve Bank (Sarb) has warned that rising geopolitical tensions, higher oil prices and growing global uncertainty are increasing risks to the domestic financial system, although South Africa remains better positioned than many of its peers to weather the storm.
Speaking at the release of the first edition of the 2026 Financial Stability Review (FSR) on Wednesday, Sarb Governor Lesetja Kganyago said the outlook had deteriorated significantly since the central bank's previous review in November 2025, largely due to the escalating conflict in the Middle East and its impact on the global economy.
"When we released the previous edition of the FSR in November last year, the outlook was positive. South Africa had been removed from the FATF greylist; we had our first sovereign credit rating upgrade in almost two decades; there was growing evidence of progress in implementing structural reforms; and fiscal dynamics were improving," Kganyago said.
