South Africa's central bank struck a measured tone after its first rate cut in more than four years on Thursday, saying although inflation had fallen faster than expected there were still risks to the outlook.

The decision to cut the repo rate signals a shift towards a more accommodative monetary policy stance in light of favorable inflation trends and supportive economic indicators.

“The Sarb [South African Reserve Bank] is likely to mirror this rate path, with cuts expected at the end of the month and continuing through next year. Projections suggest the repo rate will bottom out between 6.25% and 6.75%,” he said.

SARB cut its main benchmark rate by a quarter percentage point to 8%.