SA Reserve Bank eyes third consecutive rate cut

The South African Reserve Bank (SARB) is expected to lower the benchmark interest rate by 25 basis points to 7.5% on Thursday, marking the third consecutive rate cut. The decision, expected to be unanimous among the six-member monetary policy committee, comes as the central bank navigates economic uncertainty driven by global factors.

Governor of the SARB, Lesetja Kganyago 

Governor Lesetja Kganyago will announce the rate adjustment at a press briefing north of Johannesburg shortly after 3 p.m. Most economists predict the move, aligning with SARB’s previous two rate reductions. However, the central bank has cautioned that ongoing uncertainties in our monetary and trade policies could constrain future cuts.

The decision aims to support economic growth and ease borrowing costs, but SARB remains watchful of external risks that could influence its monetary policy trajectory in the coming months.