Reserve Bank lowers interest rates
The South African Reserve Bank has cut the repo rate by 25 basis points to 7 per cent.
It brings the prime lending rate down to 10.5 per cent.
Making the announcement on Thursday, Governor Lesetja Kganyago said the decision by the Monetary Policy Committee was unanimous.
"The rand has strengthened, and inflation expectations have moderated. The June CPI print showed headline inflation at 3% and core inflation at 3.9%, still at the bottom of our target range. That said, food inflation has risen, mainly due to meat prices.
READ: Repo rate reduced by 25 basis points
"Fuel prices are also falling more slowly now, compared to the recent past. We therefore expect headline inflation to rise over the next few months, averaging 3.3% for the year, in line with our earlier forecasts.
"Prices then stabilise around the target objective over the rest of the forecast period. The risks to this outlook appear balanced."
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