The article explores how changes in interest rates and lending affect inflation and investment in South Africa. By analyzing data, the researchers found that when monetary policy restricts lending, interest rates and lending rates increase, leading to a decrease in investment. This reduction in investment then results in lower inflation rates. Similarly, when monetary policy restricts banking sector credit, private sector credit and investment decrease, ultimately leading to lower inflation. These findings show that both the interest rate and lending channels play a significant role in how monetary policy impacts the economy in South Africa.