# South African rand holds firm after first rate cut in four years

> The South African Reserve Bank cut its benchmark interest rate by 25 basis points, its first cut in over four years, after the US Federal Reserve's larger cut. Inflation had fallen to 4.4% in August, the lowest since April 2021, and the rand held early gains at about 17.48 per dollar.

- Date: 2024-09-19 · published 2024-09-19T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/28617-south-african-rand-holds-firm-after-first-rate-cut-in-four-years
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

A new easing cycle in South Africa narrows the rate gap with the US, which can weaken the rand and raise the local-currency cost of dollar-priced feed imports over time.

## Read by commodity

- USDZAR: neutral

## Sources

- reuters.com: https://www.reuters.com/world/africa/south-african-rand-front-foot-post-fed-sarb-decision-up-next-2024-09-19/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.