It is context free.
"Context free" refers to the presence of context in the lefthand side of the production rule.
It does not matter that the righthand side is equally long; it only matters that the lefthand side consists of a single nonterminal.
When the lefthand side of a production rule consists of a single nonterminal, the rule can be applied everywhere that that nonterminal appears, regardless of the context in which it appears.
If the rule had been, for example, aS ---> λ
, then it would be context-sensitive; it could only be applied in those places where the nonterminal S
was preceded by the terminal symbol a
; when it was in the context of being preceded by a
.
For completeness, a grammar is only context-free if all its production rules are.