Another cautious cut in interest rates to 7.75% in November

The Monetary Policy Committee (MPC) unanimously decided to cut interest rates by 25 basis points to 7.75% at the November meeting as expected. Inflation forecasts were changed slightly with inflation still expected to undershoot the midpoint of the inflation target (4.5%) in the near-term but tick up in 2026. The South African Reserve Bank (SARB) emphasised the uncertain environment, which partly explains the preference of 25-basis point rather than 50-basis points cut.

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