South Africa cuts interest rates as inflation eases and rand strengthens

• Repo rate reduced to 6.75% amid easing inflation
• Government says cut will ease living costs and support growth

JOHANNESBURG, SOUTH AFRICA – South Africa on Thursday cut its benchmark interest rate by 25 basis points, marking the first policy move since the country adopted a new inflation-targeting framework.

South Africa’s government has welcomed the Reserve Bank’s decision to lower the repo rate to 6.75%, with the prime lending rate now at 10.25%, after the Monetary Policy Committee (MPC) voted unanimously for the cut.