South Africa to cut interest rate to tame inflation

South Africa’s Central Bank Governor, Lesetja Kganyago, said on Thursday that the bank may cut interest rate to tame inflation.
Kganyago said at a business conference in Johannesburg that there had been some improvement to the inflation outlook recently but that the bar remained very high for rate reductions.
Kganyago said: “The hiking cycle may be nearing its end.
“However, this does not mean the interest rate reductions are imminent, as we would like to see inflation more firmly within the target range on a sustainable basis over the forecast horizon.
“We are also clear that the bar for any future rate cuts has been set very high.”
The bank kept its benchmark lending rate unchanged at seven per cent for a third consecutive time in September.
But, it had repeatedly said it may soon halt an incremental rise in interest rates that started in early 2014 to tame inflation.
The bank sees consumer inflation averaging 6.4 per cent in 2016, outside its target range of three to six per cent, before falling back within the range in 2017.