South Africa Poised for Rate Cut to Bolster Economy

The South African Reserve Bank looks set to ease borrowing costs on Thursday to support a faltering economy, before pausing to assess any further fallout from US President Donald Trump’s trade war.

Most economists polled by Bloomberg expect Governor Lesetja Kganyago’s monetary policy committee to reduce the benchmark interest rate by 25 basis points to a more than two-year low of 7.25%. Traders are also betting on a cut: forward rate agreements used to speculate on borrowing costs show they’re pricing in an 84% chance of a quarter-point cut.