Reserve bank to cut rates less than earlier thought in 2024 – poll

South Africa's central bank is now predicted to deliver only 50 basis points of interest rate cuts this year, less than earlier projected as inflation is seen taking slightly longer to return to the Reserve Bank's comfort zone, a Reuters poll found. A cut of 25 bps to 8.00% next quarter, either in July or September, is expected from the Reserve Bank, according to a survey carried out in the past week, compared with 50 bps predicted in a March poll. The repo rate will finish the year at 7.75% instead of the 7.50% predicted last month if the central bank delivers another cut in November as the latest poll predicts. "We now forecast a more drawn-out, shallower easing cycle in South Africa," wrote Razia Khan, head of macro research for the region at Standard Chartered. Although inflation will likely dip below the mid-point of the central bank's target band in the fourth quarter it may ease hesitantly, Khan added. There will be a temporary dip in inflation in the last quarter of 2024 before it quickens again early next year, the poll showed.