The South African Reserve Bank (SARB) has kept the repo rate unchanged at 7%, leaving the prime lending rate at 10.5%.
The decision was announced by SARB Governor Lesetja Kganyago during a Monetary Policy Committee (MPC) media briefing in Pretoria on Thursday.
The announcement follows the central bank's decision in May to raise the repo rate by 25 basis points, increasing it to 7% in an effort to contain rising inflation.
The Reserve Bank's latest decision comes as inflation continues to exceed its 3% target.
According to Statistics South Africa, annual consumer inflation rose to 5% in June, surpassing analysts' expectations.
The increase has largely been attributed to higher fuel prices linked to the conflict between the United States and Iran, which has placed additional pressure on inflation.
The Monetary Policy Committee said it will continue to closely monitor inflationary risks and economic developments when considering future interest rate decisions.