Central Banks
South African Central Bank Set to Turn More Hawkish as It Cuts Rates
- Analysts predict reserve bank will cut rates by 25 bps to 7.5%
- Decision to lower borrowing costs is expected to be unanimous
The South African Reserve Bank is set to lower borrowing costs by another frugal 25 basis points on Thursday while warning that uncertainty around US monetary and trade policies may hinder future cuts.
Most economists in a Bloomberg survey expect Governor Lesetja Kganyago to reduce the benchmark interest rate to 7.5% when he delivers the announcement shortly after 3 p.m. at a press briefing north of Johannesburg. They also foresee the six-member monetary policy committee being unanimous in their decision to cut by the same quantum as they did at two previous meetings.