South Africa Cuts Interest Rates, Aims for Lower Inflation

South Africa’s central bank cut borrowing costs on the eve of a new US tariff regime that’s expected to weigh on the nation’s already faltering economy, and announced the de facto adoption of a lower inflation target. Government bonds surged.

The monetary policy committee reduced the benchmark interest rate by 25 basis points to 7%, the lowest since November 2022, Governor Lesetja Kganyago told reporters at a briefing north of Johannesburg on Thursday. The move, which will be welcomed by businesses and households, matched the median estimate of 23 economists in a Bloomberg survey.