South Africa’s first interest-rate cut since 2020 quickly divided economists over how much further it will go after making a cautious 25 basis point start to the easing cycle, despite the Federal Reserve going twice as big the day before. Rand strength, softer oil prices and slowing inflation, which has dipped below the midpoint of the reserve bank’s 3% to 6% target range, was enough to convince the monetary policy committee to reduce the benchmark rate from a 15-year high to 8%.
