JOHANNESBURG, Nov. 20 (Xinhua) -- The South African Reserve Bank announced a 25-basis-point cut in the repurchase rate, lowering it to 6.75 percent, Governor Lesetja Kganyago said on Thursday.
The move came as the annual consumer inflation in South Africa edged up to 3.6 percent in October from 3.4 percent in September.
"Inflation has accelerated somewhat over the past few months, reaching 3.6 percent, higher than the 3 percent average for the first half of the year. The uptick is mainly due to non-core items: meat, vegetables, and fuel," Kganyago said.
The governor expressed optimism that inflation would moderate in 2026, citing a depreciating currency and lower oil prices.
Kganyago said the bank is also revising its long-standing inflation target. "We have moved away from the 3 to 6 percent target range, which was established 25 years ago. The revised target is 3 percent plus or minus 1 percentage point," he added.
The governor said that the bank revised South Africa's gross domestic product growth to 1.3 percent, with prospects of climbing to around 2 percent in the near term. He described the economy as showing signs of recovery, highlighting stronger consumer spending and rising employment. ■