The South African Reserve Bank has recently decreased its policy benchmark interest rate by 25 basis points, resulting in a new rate of 7.75%. Governor Lesetja Kganyago acknowledged the ongoing uncertainty in the economic landscape and indicated that any further rate cuts in 2025 will be limited.
The central bank's projections suggest that rates may slightly ease and stabilize just above 7%. However, it is important to note that these projections are intended to serve as a general policy guide rather than a definitive forecast. The cautious approach taken by the bank reflects its commitment to navigating the complexities of the current economic environment.