Following the Fed’s 50 basis point cut in interest rates in September, the SARB cut interest rates for the first time in four years. Interest rates were reduced by 25bp to 8.00%. The SARB’s tone was more dovish than expected, with the bank’s forecasts seeing 100bp of rate cuts as the repo rate stabilises slightly above 7.0% in 2025. Nonetheless, with inflation expected to decline, we expect a 50bp cut at the next meeting in November.
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