The South African Reserve Bank (SARB) has cut interest rates by 25 basis points.
This brings the repo rate down to 8%.
According to the SARB the decision was unanimous.
A cut was widely expected following the US Federal Reserve’s cutting of interest rates on Wednesday, along with the moderating of South African inflation. Inflation in August was measured at 4.4%, the lowest since April 2021 and below the midpoint of the SARB’s target range of 4.5%.
This was also the first time the SARB had cut rates since May last year.
Lesetja Kganyago, the SARB governor, said that globally conditions were improving but central banks were still proceeding cautiously.
The SARB also revised its growth forecasts for South Africa, saying that the country will have economic growth of 1.1% this year, 1.6% in 2025, and 1.8% the following year.