South Africa seen sticking to modest rate cut despite Fed cut

The South African Reserve Bank (SARB) will likely lower interest rates by 25 basis points on Thursday, despite a larger-than-expected overnight move by the Federal Reserve as it turns the screws on inflation. Almost all of the 24 economists surveyed by Bloomberg expect Governor Lesetja Kganyago to reduce the rate from a 15-year high to 8% when he announces the decision after 3 pm at a press briefing north of Johannesburg. It will be the SARB’s first easing since the pandemic in 2020.