South African inflation reaches 3-year low of 4.6% in July, potentially prompting a rate cut by the Reserve Bank.

South African inflation remains at a three-year low, dropping to 4.6% in July, surpassing analyst expectations of 4.9%. This decline may prompt the South African Reserve Bank to consider lowering borrowing costs during their upcoming meeting on September 19. Factors supporting a rate cut include a stronger rand, South Africa's new business-friendly government, and potential US Federal Reserve interest rate cuts. Lower inflation and decreased inflation expectations could create room for repurchase rate cuts.

August 21, 2024
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