South Africa’s central bank cuts key rate, will aim for bottom of target band

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South Africa’s central bank cuts key rate, will aim for bottom of target band

3:49 CAT | 31 Jul 2025

FILE - The logo of South Africa’s central reserve bank is seen during the delivery of a keynote address by South Africa’s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. [File photo: Reuters/Siphiwe Sibeko]

South Africa’s central bank cut its key interest rate by 25 basis points to 7.00% on Thursday and said it would now aim for the bottom of its inflation target range.

The rate cut was in line with the median forecast of economists polled by Reuters.

The central bank’s Monetary Policy Committee was unanimous in its decision, central bank governor Lesetja Kganyago told a press conference.

“We have decided to aim for the bottom of our inflation target range, of 3%-6%, … this would expand policy space and make our framework more robust to shocks,” Kganyago said.

Headline inflation in Africa’s largest economy rose to 3.0% year on year in June from 2.8% in May after being below it for three months.

The South African Reserve Bank (SARB) also trimmed its policy rate by 25 basis points at its previous meeting in May.

Source: Reuters