The South African rand held onto early gains on Thursday following the South African Reserve Bank's (SARB) decision to cut interest rates for the first time in over four years, after a super-sized interest rate cut by the U.

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.

There are scenarios where inflation could undershoot the baseline focus, if oil prices are lower or the exchange rate appreciates further

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.

There was good news for South Africans in debt on Thursday when the SARB's monetary policy committee elected to cut the interest rate.

The rand gained Thursday morning ahead of a South African Reserve Bank interest rate decision, where the central bank is expected to deliver its first cut since July 2020.

The South African rand softened in early trade on Friday, cooling off after strong gains in a week that saw interest rate cuts by both the U.S. Federal Reserve and the South African Reserve Bank (SARB),

The South African rand surged to its highest point since July after the Federal Reserve started cutting interest rates and as the country’s central bank prepares for its cut. The USD/ZAR exchange rate dropped to a low of 17.