South Africa's central bank has cut interest rates for the first time in over four years, reducing the benchmark rate by 25 basis points to 8%, down from a 15-year high. This decision aligns with economists' expectations and follows a recent 50 basis-point rate cut by the Federal Reserve, suggesting a trend towards easing global financial conditions. Governor Lesetja Kganyago noted that the move was intended to support sustainably lower inflation in the medium term. Following the announcement, the South African rand appreciated against the dollar, and local government bond yields decreased. The central bank's decision comes amidst a cooling inflation rate, which dropped to 4.4% in August. Despite high real interest rates, the committee considered more aggressive cuts but ultimately reached a consensus on a more cautious approach.