SA’s shrinking economy, and inflation that’s set to set to be at the lower end of its target range, has given the Reserve Bank enough “head room” to cut interest rates by another 50 basis points (bps), according to Ninety One.

While there is a low probability that a reduction would come in July, the Bank may delivery another combined 50bps in its next two months, Peter Kent, co-head of fixed income for SA income at money manager Ninety One, said in an online presentation on Tuesday.

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