South African central bank reduces repo rate to 6.5%

South Africa’s Central Bank cut its benchmark repo rate by 25 basis points to 6.5 per cent on Wednesday, saying that risks to the inflation outlook had subsided somewhat.

Central Bank governor Lesetja Kganyago told a news conference that four members of the monetary policy committee had preferred to cut the rate and that three members wanted to hold the rate.

Fifteen of 22 economists polled by the Media last week predicted the bank would cut interest rates by 25 basis points.