The South African Reserve Bank reduced its benchmark repurchase rate by 25 basis points to 7% after its July policy meeting, matching economists’ expectations. The move takes borrowing costs to their lowest level since the end of 2022 and follows prior guidance that rates would move lower as inflation eased toward the bottom of the bank’s 3%-6% target range. Commercial banks’ prime lending rate will fall to 10.5%, easing credit conditions for businesses and households. Policymakers signalled that further adjustments will depend on the inflation outlook and domestic growth prospects.