Johannesburg – The South African Reserve Bank has cut interest rates by 25 basis points.
Reserve Bank governor Lesetja Kganyago on Thursday, (30 January 20250, announced the repo rate cut by 25 basis points from 7.75% to 7.50%.
Kganyago said in coming to the decision to cut the interest rate risks to the inflation outlook were assessed to the upside.
Kganyago said two members of the Monetary Policy Committee wanted to keep the interest rate unchanged.
The Reserve Bank’s announcement follows after the Fed announced on Wednesday that its interest rate will be kept unchanged.
“The question is therefore whether the Reserve Bank will announce another reduction of 25 basis points in March,” said Riaan Grobler, head of advisory services at Everest Wealth.
“And whether it will also apply the brakes first, with Kganyago again emphasising that global economic uncertainties and President Donald Trump’s trade policy pose a risk to inflation and that caution must therefore be exercised.”
The Fed cut its interest rate by 25 basis points in December – the third consecutive interest rate cut for a cumulative 100 basis points last year.
“It was already clear then that the Fed would start to become more cautious and would eventually announce fewer and lower cuts than previously expected. The expectation is now that the Fed may not cut interest rates again until June.”
After the latest cut, South Africa’s interest rate has now been reduced by 75 basis points since September.
