South African Traders Boost Bets on Rate Cut as Futures Fall to Record Low

South African money-market futures used by analysts to gauge interest-rate expectations slumped to the lowest ever level.

FRAs, or forward-rate agreements, showed traders increased bets the central bank will lower its 6.5 percent benchmark interest rate when it announces its next decision on Sept. 9. The cost of three-month cash contracts due in one month fell 4.05 basis points to 6.1595 percent, the lowest level since the central bank first introduced its repurchase rate in 1999.

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