South Africa Rate Cut Seen After CPI Goal Endorsed

South Africa is expected to lower interest rates, after the formal adoption of a 3% inflation target and the government’s display of fiscal discipline provided policymakers with room for easing.

Economists polled by Bloomberg see Governor Lesetja Kganyago’s monetary policy committee reducing the benchmark rate by 25 basis points to 6.75% at their meeting on Thursday. Traders are betting on the same outcome, with forward rate agreements used to speculate on borrowing costs pricing an 84% chance of such a cut.